Is JPMorgan Stock A Buy Or Sell After Recent Earnings
(Preview) Company Update (JPM US) (Neutral)
Summary
JPM shares closed down 6.3% on Friday after Q4 2021 results. We believe investors were disappointed by the outlook on 2022 and beyond.
Management reiterated that return on equity will likely be below target in 2022, and their comments indicate this may continue into 2023.
Headwinds include a slow recovery in interest income, lower investment banking activity, higher expenses, and higher capital requirements.
Q4 saw earnings (excluding reserve releases) continuing to trend down, investment bank revenues falling, and card income under pressure.
With shares at $157.89, we expect an exit price of $194 and a total return of 35% (8.4% annualized) by 2025 year-end. Avoid.
Introduction
JPMorgan Chase stock closed down 6.3% on Friday (January 14), after the company released Q4 2021 results.
We downgraded our rating on JPM to Neutral in April 2021. After Friday's fall, JPM shares have risen just 1.8% in the seven months since our downgrade.
We believe that investors were disappointed because JP…