Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

JPMorgan premium valuation has now returned, Citi cuts to neutral

Published 07/12/2023, 02:06 PM
© Reuters.  JPMorgan (JPM) premium valuation has now returned, Citi cuts to neutral
JPM
-

On Wednesday, Citi analysts downgraded JPMorgan (NYSE:JPM) to Neutral with a $160 per share price target.

The analysts explained to investors in a note previewing U.S. bank stocks' second-quarter earnings that the JPM downgrade is based on its valuation.

"JPM is viewed as a high-quality franchise with a strong management team and balance sheet and in turn is rewarded with a premium valuation," explained the analysts.

They added that "JPM has been a top performer YTD as the market shifted towards higher-quality names following the regional bank turmoil in March/April and at current levels of ~2x TBV and ~10.5x 2024 EPS."

However, they believe the bank's premium valuation has now returned, and as a result, they are moving to the sidelines. JPMorgan shares are up around 0.8% Wednesday, trading around the $148.55 mark.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.