Gold prices near 3-week lows as stronger dollar, trade progress weigh
Investing.com - Citi has raised its price target on JPMorgan (NYSE:JPM) to $275 from $250 while maintaining a Neutral rating on the stock. The banking giant, currently trading at $284.26 and with a market capitalization of $789 billion, has recently hit new 52-week highs. According to InvestingPro data, the stock’s RSI suggests overbought conditions.
The price target increase reflects Citi’s decision to lower its cost of equity assumption to 9.4% in its residual income model, which aligns with current implied volatility from option markets. While Citi noted that JPMorgan currently trades at 2.8 times tangible book value and 15 times the firm’s 2026 earnings per share estimate, InvestingPro analysis shows the stock trading at a P/E ratio of 13.88x, suggesting relatively attractive valuation metrics relative to its growth potential.
Citi expects investor focus to center on net interest income (NII) heading into JPMorgan’s second-quarter earnings report, scheduled for July 15, as consensus estimates already exceed the bank’s formal full-year NII guidance after pricing in an upward revision implied at JPMorgan’s May Investor Day. With analyst price targets ranging from $195 to $330, the current consensus recommendation stands at 2.16 (Overweight).
The research firm indicated that management has provided clear expense guidance, with both Citi’s estimates and Wall Street consensus tracking in line with the bank’s projections.
Citi analyst Keith Horowitz characterized JPMorgan’s valuation as a "two-way debate," noting that while the firm assumes a 19% normalized return on tangible common equity (versus management’s 17% target), the market appears to be pricing in a 9% cost of equity, which "does not leave much to play for."
In other recent news, J.P. Morgan has introduced enhancements to its Self-Directed Investing platform, focusing on fixed income investments. These updates, available via the Chase mobile app and Chase.com, include tools like a Yield Comparison Table and Customizable Screeners, aimed at simplifying fixed income trading. Meanwhile, Jennifer Garner’s organic baby food company, Once Upon a Farm, has confidentially filed for an initial public offering in New York, with Goldman Sachs and JPMorgan as lead underwriters. The IPO could value the company at approximately $1 billion, though plans may shift depending on market conditions. In analyst updates, BofA Securities raised its price target for JPMorgan to $325 from $300, maintaining a Buy rating, while Wells Fargo (NYSE:WFC) increased its target to $320, reaffirming an Overweight rating. TD Cowen also reiterated its Buy rating with a $315 price target, citing JPMorgan’s growth momentum and leadership. These developments reflect continued confidence in JPMorgan’s strategic direction and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.