JPMorgan: Steady Q4 & Well-Prepared For 2023
(Preview) Company Update (JPM US) (Buy)
Summary
JPMorgan Chase & Co. delivered another steady quarter, with profits up year-on-year and a strong 20% Return on Tangible Common Equity.
Strong Net Interest Income, driven by both higher rates and loan growth, more than offset a modest fall in Non-Interest Revenues.
JPMorgan now has more than enough credit reserves for a mild recession, and will likely remain profitable even in a bad one.
Buybacks are resuming after JPMorgan hit a capital ratio target early. The dividend represents a 2.8% yield now and should rise further.
With JPMorgan Chase & Co. shares at $142.94, we expect a total return of 40% (12.5% annualized) by end of 2025. Buy.
Introduction
JPMorgan reported their Q4 2022 results this morning (January 13). JPM shares initially fell by as much as 2.8% at the open, but are now up 2.4% (as of 13:10 EST).
We have covered JPM stock on Seeking Alpha since 2019. Our current Buy rating was the result of an upgrade last April; since then, JPM shares have gained 15% (including dividends…