Citi Finds JPMorgan Chase Attractive (JPM)

Keith Horowitz, analyst at Citigroup Global Markets has upgraded JPMorgan Chase & Co (NYSE: JPM) as Buy with a target price of $48.00.

JPM shares have been underperforming and the present price points make compelling entry levels. JPM shares fell 6% due to plans by the U.S. Administration to restrict proprietary trading by banks. However, Citi believes that the impact of such a move on EPS would be at most 2%. Citi also believes that proposals to limit size and scope of banks do not have a high chance of forcing JPM to cut its balance sheet size.

JPMorgan has a conservative balance sheet, thus providing minimal downside to investors while giving itself the opportunity to grow. Regulatory concerns remain but are believed to be factored at current levels.