JPMorgan Chase & Co. reported strong earnings earlier this week, and Bank of America is even more bullish on the stock’s future. BofA reiterated its Buy rating on JPMorgan Chase & Co. He also raised his price target to $420 from $408, implying a 21% upside from Wednesday’s closing price. “(Second quarter) results confirmed our positive investment thesis that JPM stock offers the most attractive risk/return across our coverage,” analyst Ebrahim Poonawalla said in a note Wednesday. “The combination of favorable revenue growth related to capital markets (and AI capex), positioning to monetize opportunities related to AI and digital asset adoption, superior operating leverage given the unparalleled scale of franchise investments (branches, assets, UK/EU online banking), and excellent capital flexibility is attractive.” JPM YTD Mountain JPM YTD JPMorgan on Tuesday posted adjusted earnings of $6.14 per share on revenue of $52.42 billion in the second quarter, beating expectations, according to LSEG data. Wall Street had expected adjusted earnings of $5.85 per share and revenue of $50.19 billion in the same period, according to analysts compiled by LSEG. Poonawalla also added during the earnings call that the company is well-positioned to continue to grow due to the “resiliency of the Main Street economy given multiple macro shocks.” Bank of America said the willingness of consumers and businesses to “absorb the impact of higher long-term interest rates” could support JPMorgan’s efforts to further increase its share price. Bank of America’s call is consistent with Wall Street consensus. Of the 26 analysts covering JPMorgan, 14 rate the stock as a “buy” or “strong buy,” according to LSEG data. The stock is up nearly 8% since the beginning of the year, slightly underperforming the broader market.
