JPMorgan Chase Price Target Upped On Calmer Europe
Graseck also said that contrary to the "consensus view
The analyst raised her 2013 earnings estimate by two cents to $5.20 a share, while leaving her 2012 EPS estimate unchanged, at $4.46.
JPMorgan Chase's shares closed at $39.95 on Wednesday, returning 21% year-to-date, following a 20% decline in 2011.
JPMorgan's shares were trading for 1.3 times tangible book value according to HighlineFI, and for 8.5 times the consensus 2012 earnings estimate of $4.69, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $5.45.
Here's a summary the same data for the rest of the "big four" U.S. bank holding companies:
- Shares of Bank of America (BAC) closed at $8.00 Wednesday, returning 44% year-to-date, following a 58% decline in 2011. The shares trade for just 0.6 times tangible book value, but for 11 times the consensus 2012 EPS estimate of 71 cents. That's the highest forward price-to-earnings ratio among the big four. The consensus 2012 EPS estimate is $1.29.
- Shares of Citigroup (C) closed at $33.24 Wednesday, returning 26% year-to-date, following last year's 44% decline. Citi also trades at a heavily discounted 0.7 times tangible book, and at a much lower multiple of eight times the consensus 2012 EPS estimate of $3.99. The consensus EPS estimate for 2013 is $4.79.
- Wells Fargo (WFC) closed at $30.42 Wednesday, returning 11% year-to-date. The shares trade for 1.7 times tangible book value, which is the highest price to book ratio among the big four, reflecting Well's Fargo's status as the best and most consistent earner among the group, with returns on average assets ranging between 1.11% and 1.27% over the past five quarters, according to HighlineFI. The shares trade for 9.5 times the consensus 2012 EPS estimate of $3.20. The consensus 2013 EPS estimate is $3.69.
Graseck raised her price target for JPMorgan chase because of the company's "exposure to European resolution, which improve
"Taking share in tough markets makes it a very attractive way to play the
Graseck's $45 price target for JPM is based on a "base case," scenario, with a "modest U.S. recovery," including "sub-par economic growth," a continued decline in problem loans, and a price-to-tangible book ratio of 1.2.