JPMorgan Chase: Hold Rating Amid Ambitious Targets and Economic Uncertainties

Morgan Stanley analyst Betsy Graseck maintained a Hold rating on JPMorgan Chase (JPM – Research Report) today and set a price target of $235.00.

Betsy Graseck’s rating is based on a combination of factors including JPMorgan Chase’s financial targets and economic projections. The firm has set ambitious targets for return on tangible common equity (ROTCE) across its various divisions, with a firmwide target of approximately 17% and higher targets for its Consumer & Community Bank and Asset & Wealth Management divisions. Additionally, JPMorgan’s new guidance for card net charge-offs (NCO) reflects different economic scenarios, ranging from a soft landing to a deep recession, with varying unemployment peaks.
Betsy Graseck also considers JPMorgan’s strategic initiatives, such as its $50 billion direct lending balance sheet commitment and increased advisor hiring in the Global Private Bank. However, the absence of COO Jenn Piepszak from key presentations might indicate potential uncertainties in leadership visibility. These elements, combined with the current economic environment and JPMorgan’s preparedness for potential unemployment peaks, contribute to the Hold rating, suggesting that while the stock has potential, it may not outperform the market significantly in the near term.

In another report released on May 16, KBW also maintained a Hold rating on the stock with a $253.00 price target.

Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JPM in relation to earlier this year.