JPMorgan Has 35% Upside: Credit Suisse

The analyst also said that JPMorgan remained committed to the universal banking model, in the "belief that it lowers risk and adds to shareholder value," since "volatility of revenues is lower attributable to their economies of scale," and because the company's "broader distribution" gives it the ability "to invest in growth more consistently than peers who are more narrowly focused."

JPMorgan's shares closed at $37.01, returning 14% year-to-date, following a 20% decline during 2011. The shares are down 9% since closing at $40.74 on May 10, when CEO James Dimon estimated $2 billion in trading losses from hedging activity by the company's Chief Investment Office. While the CIO's second-quarter trading losses ended up totaling $4.4 billion, JPMorgan reported second-quarter earnings of $5 billion, and Dimon said the company had "significantly reduced the total synthetic credit risk in CIO," and that "hopefully, if all goes well, we can start buying back stock early in the fourth quarter."

The shares trade for 1.1 times tangible book value, according to Thomson Reuters Bank Insight, and for seven times the consensus 2013 earnings estimate of $5.21 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $4.66.

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-- Written by Philip van Doorn in Jupiter, Fla.