On Thursday, Keefe, Bruyette & Woods analysts adjusted the price target for JPMorgan Chase & Co (NYSE: JPM) shares, increasing it to $264 from the previous $257, while maintaining a Market Perform rating on the stock.
The adjustment follows JPMorgan’s recent earnings report, which surpassed analyst expectations in terms of revenue, largely driven by fee income.
JPMorgan’s net interest income (NII) also exceeded forecasts by $0.04 for the quarter, and the guidance for NII was about $1 billion higher than anticipated.
Despite these positive results, JPMorgan’s stock performance lagged behind the Bank Index (BKX) by over 200 basis points after the earnings announcement.
The lag was attributed to several factors, including the bank’s 20% premium valuation based on its 2026 price-to-earnings ratio, uncertainties regarding management succession, and questions surrounding the strategy and timing for the deployment of excess capital.
The analysts acknowledged JPMorgan’s status as a top-tier financial institution, noting its strong performance in the quarter.
However, they pointed out that "its stock outperformance historically occurs in a risk-off environment when it can more attractively deploy capital."
The bank’s ability to navigate uncertain market conditions and its strategic financial management were highlighted as key aspects of its robust quarterly performance.
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