JPMorgan: Strong Q2 Points To $192 Exit By 2025

(Preview) Company Update (JPM US) (Buy)

Introduction

JPMorgan Chase & Co. reported their Q2 2022 resultson Thursday (July 14). Shares fell 3.5% during the day, buthave so far rebounded 3.6% on Friday (as of 12:15 EST).

We upgraded our rating on JPM from to Buy in April, having covered the stock on Seeking Alpha since 2019. JPM shares are currently down 10.5% (after dividends) since our upgrade, about 2% ahead of the S&P 500, and have fallen 35% since their peak last October.

Q2 results were in line with our investment case. Higherregulatory requirements have led management to suspendbuybacks, but long-term return targets remain unchanged.JPM’s Return on Tangible Common Equity (“ROTCE”) for thequarter was 17%, in line with its average across-the-cycletarget. Loan growth was strong, Net Interest Yield benefitedfrom higher rates, and Investment Banking revenuesnormalized downwards as expected. JPM continued to benefitfrom a strong macroeconomic backdrop but is also well-prepared for any downturn.

Our forecasts indicate a 2025 year…