Powerful bank JPMorgan Chase (JPM -0.32%) is also quite a powerful investment. According to one analyst, the company's shares can easily produce a double-digit return. Read on to get his take on this ever-prominent American lender.
A bullish take on a bearish day
In some respects, the timing is off for a bullish take on JPMorgan Chase. After all, this particular analyst report came mere hours after the bank unveiled its first-quarter results. In that report, its guidance for full-year net interest income (NII) -- a key line item for lenders -- came in under the consensus prognosticator estimate.
Speaking of prognosticators, CFRA Research's Kenneth Leon was one who nevertheless predicted the shares would bounce back from the post-earnings sell-off (the company's stock closed more than 6% lower the day the results were published). He reiterated his buy recommendation and price target of $215 per share, which at the moment implies a nearly 18% upside over the next 12 months.
In a research note explaining his reasoning, Leon wrote, "We think current rates and a healthy U.S. economy support higher loan volume and the impact on net interest income (NII), which JPM is guiding conservatively." The pundit also said he's expecting investment banking fees -- a major part of JPMorgan Chase's business -- will be far higher over the course of this year compared to 2023.
Massive, powerful, and growing ever larger
JPMorgan Chase is a very well-managed and admired bank that, at times, can fall victim to outsize expectations.
By every measure that counts, JPMorgan's first quarter was impressive, with double-digit percentage gains on a year-over-year basis for a clutch of important metrics (including, yes, NII, plus total loans, and those investment banking fees Leon is looking forward to). If you believe in this economy then you should believe in this bank's ability to do well servicing it. Leon's take feels correct to me.
