Welcome to Extreme Investor Network, where we provide expert advice and insights on investing in the stock market. Today, we have some important information to share regarding JPMorgan Chase.
According to analyst David George from Baird, investors should consider dumping JPMorgan Chase shares. George has downgraded the stock to underperform from neutral and set a price target of $200, implying a potential downside of around 19% from the recent close.
George believes that JPMorgan is over-earning on both net interest income and credit, making the risk-reward profile of the stock “poor.” He also points out that the stock is currently trading at high levels, with expectations being quite high across various metrics such as tangible book value, cap to assets, and earnings per share estimates.
Despite the potential for a more bank-friendly regulatory environment under a second Trump administration, George does not expect JPMorgan Chase to aggressively buy back its stock at the current prices. He suggests that buybacks may not have a significant impact on earnings per share and may not be a wise use of capital at these levels.
It’s important to note that George’s call to sell JPMorgan Chase shares goes against the recommendations of many other analysts on the Street. Data from LSEG shows that 15 out of the 24 analysts covering the stock have a buy or strong buy rating.
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