JPMorgan stock price target raised to $338 from $336 at Morgan Stanley

Investing.com - Morgan Stanley has raised its price target on JPMorgan Chase (NYSE:JPM) to $338.00 from $336.00 while maintaining an Equalweight rating on the stock. The banking giant, currently valued at $822 billion, has seen its shares surge nearly 29% year-to-date.

The investment bank’s adjustment represents a modest 1% increase, in line with changes to its 2027 earnings per share (EPS) estimates. Morgan Stanley expects JPMorgan to deliver EPS growth of 8-11% annually over the next three years. According to InvestingPro, seven analysts have recently revised their earnings estimates upward, with the company currently trading at a P/E ratio of 15.26x.

The firm forecasts JPMorgan’s return on tangible common equity (ROTCE) to reach 21% in 2027, with projections ranging between 20-22% over the next three years. This performance metric supports Morgan Stanley’s price-to-tangible book ratio of 2.9x.

Morgan Stanley views JPMorgan’s current valuation as "full" and projects approximately 12% upside potential for the stock, driven by earnings growth rather than multiple expansion.

The bank’s positive outlook stems from expectations of an extended capital markets rebound, accelerated M&A financing, robust credit card loan growth, and modest credit losses through 2027.

In other recent news, JPMorgan Chase & Co. reported impressive third-quarter 2025 earnings, exceeding analyst expectations. The bank announced an earnings per share of $5.07, surpassing the forecasted $4.84, and reported revenue of $46.43 billion, which was higher than the anticipated $45.25 billion. These results highlight JPMorgan’s ability to navigate market challenges effectively. Additionally, JPMorgan CEO Jamie Dimon issued a caution regarding potential broader credit issues following recent bankruptcies in the auto sector, specifically mentioning auto lender Tricolor Holdings and car-parts supplier First Brands Group. Dimon suggested that these events could indicate larger credit problems on the horizon. Despite the strong earnings report, the bank’s stock saw a pre-market decline, reflecting ongoing market uncertainties. Investors are advised to stay informed about these developments as they may impact future financial landscapes.

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