Oppenheimer analyst Chris Kotowski weighed in with a few insights on JPMorgan Chase & Co. (NYSE:JPM), after the company reported second-quarter financial results and held a conference call yesterday morning to provide a corporate update. Kotowski also maintained a Perform rating on JPM, without providing a price target. JPMorgan shares are trading almost flat at $69 as of 12:39 p.m. EDT today.
Kotowski wrote, “JPM kicked off earnings season with another “no surprises” report. What we find more notable is that the little “beats” and “misses” on all the various line items is the tremendous stability of the line items, even on the historically volatile items like FICC trading. Over the last eight quarters revenues have averaged $23.7B, with a high of $24.5B and a low of $23.0B, and they were $23.5B this quarter. Moreover, most of the individual line items were right in line with our expectations. The movement in core earnings thus was driven mainly by good expense control (down 3.7% vs a 3.1% revenue decline) and 1.8% shrink in share count. It’s a game of yards, not touchdown passes.”
The analyst continues to think that JPM is a good, high quality core holding in the group, however, he thinks Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C) are more compelling at this juncture.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Kotowski has a total average return of 3.6% and a 70.3% success rate. Kotowski has a 12.5% average return when recommending JPM, and is ranked #730 out of 3708 analysts.
Out of the 24 analysts polled by TipRanks, 19 rate JP Morgan stock a Buy, while 5 rate the stock a Hold. With a downside potential of 3.0%, the stock’s consensus target price stands at $66.95.