JPMorgan stock rating downgraded to Neutral by Phillip Securities

Investing.com - Phillip Securities downgraded JPMorgan (NYSE:JPM) from Accumulate to Neutral on Wednesday, while raising its price target to $291.00 from $252.00. The stock currently trades at $285.28, near its 52-week high of $296.40, after posting impressive year-to-date returns of over 21%.

The firm cited macro uncertainties including trade tensions and policy shifts as key reasons for the downgrade, noting these factors could increase provisions and non-performing loans for the banking giant.

Phillip Securities also expressed concern about potential interest rate cuts that could hurt net interest income and lower margin expectations for JPMorgan.

Despite the downgrade, the firm raised its FY25 earnings estimates by approximately 6%, increasing projections for net interest income, trading, and investment banking, while lowering provisions estimates.

The firm acknowledged JPMorgan’s ability to continue growing revenue across all segments, particularly in Consumer & Community Banking and Corporate & Investment Banking, but noted valuations appear full with JPMorgan’s P/E ratio at approximately 14x compared to its 10-year average of 11.6x.

In other recent news, JPMorgan Chase reported impressive financial results for the second quarter of 2025, with earnings per share (EPS) reaching $4.96, surpassing the forecasted $4.48. The company’s revenue also exceeded expectations, totaling $44.9 billion, despite a 10% year-over-year decline. Analysts at Keefe, Bruyette & Woods raised their price target for JPMorgan to $330, citing strong returns and increased earnings estimates for 2025 and 2026. Similarly, TD Cowen increased its price target to $350, highlighting JPMorgan’s robust fee income growth and a $1 billion boost in its net interest income outlook for 2025.

JPMorgan Chase also announced the launch of Solo 401(k), a retirement plan tailored for self-employed individuals, expanding its Everyday 401(k) product line. This development coincides with a survey indicating that only 44% of business owners are satisfied with their retirement contributions. Additionally, the company declared dividends on eight series of its preferred stock, though specific amounts and payment dates were not disclosed.

Vestwell will continue as the recordkeeper for JPMorgan’s expanded Everyday 401(k) platform, which offers both pre-tax and Roth contribution options. In the banking sector, JPMorgan maintains a strong position with a return on tangible common equity (ROTCE) of 21%, as noted by analysts. The firm’s strategic investments and focus on digital banking and innovation continue to drive its competitive edge in the market.

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