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JPMorgan Chase Could Blast as Much as 31% Higher Following Q4 Earnings, Says Analyst

By Eric Volkman - Updated Jan 20, 2021 at 10:18AM

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The big bank is nicely positioned to take advantage of an economy getting over the coronavirus pandemic, a Credit Suisse prognosticator believes.

As often happens just after a company delivers blowout quarterly results, JPMorgan Chase (JPM -0.82%) is feeling some extra love from analysts. On Tuesday, one of them -- Credit Suisse's Susan Roth Katzke -- raised her price target on JPMorgan Chase stock to $150 per share, up from the previous $142, while maintaining her outperform (buy) rating.

But Katzke also believes the stock could go higher. Her best-case scenario, which assumes a relatively quick economic recovery from the travails of the pandemic among other positive developments, models $181. That represents a gain of over 31% on JPMorgan's most recent closing share price.

Cash being exchanged though a bank window.

Image source: Getty Images.

She is not the only JPMorgan watcher who has recently upped a price target on the stock. Also on Tuesday, Royal Bank of Canada pegged it at $150 per share, from its previous $130, while Barclays boosted its own target by just under 5% to $172.

JPMorgan Chase's final quarterly results from 2020 were released on Friday. The per-share earnings of $3.79 were significantly higher than the average analyst estimate, and while the period's revenue of nearly $30.2 billion wasn't as dramatic a beat, it still comfortably topped expectations.

This was aided enormously by robust 34% year-over-year growth in investment banking, while the bank's source of cheap funding expanded greatly with a 35% increase in average deposits. Another piece of happy news for investors was that, in line with a recent loosening of restrictions by the Fed, JPMorgan Chase is resuming share buybacks to the tune of $4.5 billion in its current quarter.

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Stocks Mentioned

JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
JPM
$117.34 (-0.82%) $0.97
Credit Suisse Group AG Stock Quote
Credit Suisse Group AG
CS
$6.78 (0.44%) $0.03
Barclays PLC Stock Quote
Barclays PLC
BCS
$7.79 (-0.64%) $0.05
Royal Bank of Canada Stock Quote
Royal Bank of Canada
RY
$99.17 (-0.03%) $0.03

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