BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Freedom Broker has raised its price target on JPMorgan Chase (NYSE:JPM) to $295.00 from $240.00 while maintaining a Hold rating on the stock. The banking giant, currently trading near its 52-week high with a market capitalization of $804.69B, appears slightly overvalued according to InvestingPro Fair Value metrics.
The adjustment follows JPMorgan’s strong second-quarter 2025 results, where earnings per share significantly exceeded consensus expectations despite net revenue declining 11% year-over-year. The stock has demonstrated robust performance, delivering a 23.22% return year-to-date, while maintaining its 14-year streak of consecutive dividend increases with a current yield of 1.93%.
According to Freedom Broker analyst Mikhail Paramonov, the bank’s positive performance was driven by solid results in its investment banking division, lower provision expenses, and one-time tax benefits.
JPMorgan’s management has modestly raised its 2025 guidance for both net interest income and operating expenses, while maintaining a cautious stance given macroeconomic uncertainty.
The new $295 price target represents a price-to-earnings multiple of 14x applied to forward earnings per share of $21 for the period spanning the third quarter of 2026 through the second quarter of 2027.
In other recent news, the New York Attorney General, Letitia James, filed a lawsuit against Early Warning Services, LLC, the operator of Zelle, citing over $1 billion in losses due to fraud from 2017 to 2023. The lawsuit alleges that Zelle was designed without critical safety features, making it susceptible to scams. Early Warning Services is owned by major banks, including JPMorgan Chase, Bank of America, Capital One (NYSE:COF), and Wells Fargo (NYSE:WFC). Additionally, President Donald Trump has accused Bank of America and JPMorgan Chase of political discrimination, claiming these banks refused to accept his deposits and discriminated against conservatives. In response, the White House is reportedly drafting an executive order to investigate banks for alleged political discrimination. Meanwhile, JPMorgan Chase has reached a significant milestone by completing its 1,000th branch as part of its expansion initiative since 2018. Furthermore, FedEx (NYSE:FDX) has adopted J.P. Morgan Payments’ Supply Chain Finance solution integrated with Oracle (NYSE:ORCL) Fusion Cloud ERP to enhance its working capital management. This integration allows FedEx to streamline the setup process significantly, reducing what would typically be a lengthy development project.
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