JPMorgan Chase reported strong earnings earlier this week, making Bank of America even more bullish on the stock going forward. BofA reiterated its buy rating on JPMorgan Chase. It also raised its price target on shares to $420 from $408, implying 21% upside from Wednesday’s close. “[Second quarter] results reinforced our positive investment thesis that JPM shares offer among the most attractive risk/reward across our coverage,” analyst Ebrahim Poonawala said Wednesday in a note. “The combination of revenue growth upside tied to capital markets (and AI capex), positioning to monetize opportunities tied to AI and digital asset adoption, superior operating leverage given the unmatched scale of franchise investments (branches, wealth, UK/EU online bank), and superior capital flexibility [are] compelling.” JPM YTD mountain JPM year to date JPMorgan on Tuesday posted adjusted earnings of $6.14 per share on revenue of $52.42 billion for its second quarter, exceeding expectations, LSEG data shows. Wall Street had expected adjusted earnings of $5.85 per share and $50.19 billion in revenue for the same period, according to analysts polled by LSEG. The bank also during its earnings call that it is in a good position to continue growing due to “the resiliency of the Main Street economy given multiple macro shocks,” Poonawala added. That willingness of consumers and businesses to seemingly “absorb the impact of higher-for-longer interest rates” could support JPMorgan’s efforts to add more upside to its shares, according to Bank of America. Bank of America’s call falls in line with consensus on Wall Street. Of the 26 analysts covering JPMorgan, 14 have a buy or strong buy rating on the stock, LSEG data shows. Shares have risen nearly 8% year to date, slightly underperforming the overall market.
