Why These 4 Analysts Have Different Takes On JPMorgan Chase's Q2 Results

JPMorgan Chase & Co. (NYSE: JPM) reported its second-quarter revenues at $30.7 billion, missing Street expectations of $31.81 billion, and earnings of $2.76 per share, short of the consensus estimate of $2.92 per share.

RBC Capital Markets On JPMorgan: Analyst Gerard Cassidy maintained an Outperform rating for the company while reducing the price target from $155 to $130.

“The company's core traditional banking businesses performed well but its capital markets businesses, especially investment banking, had a difficult quarter,” Cassidy said. “Net interest income growth was strong, loan growth was good and credit quality was very good.”

The price target had been lowered to reflect “a change in the market outlook," he added.

Morgan Stanley On JPMorgan: Analyst Betsy Graseck reiterated an Underweight rating, while raising the price target from $160 to $167.

“JPM suspended buybacks to build its CET1 ratio to 13.2% by 1Q23,” Graseck wrote in a note. “While that's in-line with what we expected after the Fed's stress test resulted in a ~1% SCB increase at JPM/BAC/Citi, today's -3.5% stock reaction shows it wasn't fully baked into JPM's share price,” she added.

Credit Suisse Stanley On JPMorgan: Analyst Susan Roth Katzke maintained an Outperform rating, while reducing the price target from $160 to $145.

Analyst Katzke lowered the earnings estimates for 2022 and 2023 from $11.65 per share to $11.10 per share and from $13.00 per share to $12.75 per share, respectively, to reflect “the benefit of incremental net interest revenue (higher rates/more loan growth) and the cost of a macro view that dictates loan loss reserve build (assuming a mild recession).”

BMO Capital Markets On JPMorgan: Analyst James Fotheringham maintained a Market Perform rating, while keeping the price target unchanged at $153.

JPMorgan’s core results were in-line with expectations, Fotheringham said in a note.
“Operating results for the quarter were solid, but we remain on the sidelines as JPM faces headwinds from higher expenses, credit normalization, sluggish capital markets, and rising capital requirements,” the analyst wrote.

“Rates remain a tailwind but fees disappointed and we worry about the impact of economic deterioration on credit trends,” he added.

JPM Price Action: Shares of JPMorgan Chase had risen by 0.59% to $108.64 at the time of publication Friday.
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