Evercore Partners announced on Tuesday that it has cut estimates on financial services company JPMorgan Chase & Co (JPM
Following the company’s CFO presentation, the firm has lowered its estimates on JPM. Analysts have maintained an “Overweight” rating and $61 price target on JPM. This price target suggests a 13% upside from the stock’s current price of $52.86.
Analyst Andrew Marquardt commented: “Tempered expectations overall…, in our view, given lower mrtg banking, and sales/trading, higher expenses while credit costs remain lower for longer and NII should improve (albeit slightly). Capital clarity helpful and while higher hurdles may indeed result in lower l/t ROEs, mgmt implied such may not impact l/t franchise ROAs. That said, we would not be surprised if degree of capital deployment is curtailed for 2H13 and for ’14. Regardless, we think such concerns are more than reflected in shares given discount to peers, SOTPs, ultimate earnings power, etc.”
Looking ahead, FY2013 estimates have been raised from $5.74 to $5.88 per share, FY2014 estimates have been lowered from $5.80 to $5.75 per share and FY2015 estimates were cut from $6.20 to $6.12 per share.
JPMorgan shares were up 47 cents, or 0.89%, during pre-market trading Tuesday. The stock is up 20% YTD.
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