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Investing.com - TD Cowen has raised its price target on JPMorgan Chase (NYSE:JPM) to $336.00 from $325.00 while maintaining a Buy rating on the stock. The banking giant, currently trading at $291.45 with a market capitalization of $809 billion, is showing strong momentum, trading near its 52-week high of $292.65. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The firm cited JPMorgan’s robust capital announcement, which exceeded analyst expectations with a plan to repurchase up to $50 billion in common stock, representing an approximately 66% increase compared to its 2024 plan.
JPMorgan also announced approximately a 7% increase to its common dividend, further enhancing its capital return program to shareholders.
TD Cowen noted that JPMorgan had previously indicated during its recent investor day that it possessed significant excess capital that could be unlocked with a more accommodating regulatory environment.
The announced capital plan "strongly reinforces that message" and positions the bank to "reduce this excess more aggressively," according to TD Cowen’s analysis.
In other recent news, JPMorgan Chase has been the subject of significant developments. The Federal Reserve’s annual stress test revealed that JPMorgan, along with other major banks, maintained strong capital positions even under a hypothetical severe recession scenario. Despite projected hypothetical losses, all 22 banks tested, including JPMorgan, remained above their minimum capital requirements. In analyst activity, Baird downgraded JPMorgan to underperform due to valuation concerns, while Citi raised its price target from $250 to $275, citing lower risk assumptions. Additionally, JPMorgan has enhanced its Self-Directed Investing platform with new fixed income tools, providing users with features like a Yield Comparison Table and Customizable Screeners. These updates aim to simplify fixed income trading for investors. Furthermore, JPMorgan is involved as a lead underwriter for the potential IPO of Jennifer Garner’s organic baby food company, Once Upon a Farm, which could value the company at about $1 billion.
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