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On Wednesday, Piper Sandler expressed continued confidence in JPMorgan Chase & Co. (NYSE:JPM), reiterating an Overweight stock rating with a $260.00 price target. The firm’s analyst highlighted the upcoming annual investor day, set to take place in New York City on May 19, 2025, as an event of significant interest to the financial community. The presentations, scheduled from 8:00 am to noon ET, are expected to provide a platform for JPMorgan’s management to share insights amid current macroeconomic volatility. The bank has demonstrated strong performance, with revenue growth of 12.73% in the last twelve months and maintains a robust dividend history, having increased payments for 14 consecutive years.
The analyst anticipates that the investor day will offer an opportunity to hear management’s high-level thoughts, potentially previewing themes that may surface in mid-quarter updates the following month. Additionally, it is likely that JPMorgan will reaffirm its financial targets for fiscal year 2025, including net interest income (NII) and expense guidance, as well as a 17% through-the-cycle return on tangible common equity (ROTCE) target. InvestingPro analysis indicates the bank maintains a "GOOD" overall financial health score, with particularly strong marks in profit and price momentum metrics.
Piper Sandler also expects JPMorgan to give guidance for the second quarter of 2025 concerning investment banking and market operations. The firm suggests that its own current second-quarter investment banking estimates might be overly optimistic, given recent data.
In summary, the analyst believes the investor day will not only offer valuable market insights and expected guidance confirmations or updates but will also provide a comprehensive overview of JPMorgan’s strategic positioning. The reiteration of the Overweight rating underscores Piper Sandler’s view of JPMorgan as a best-in-class institution within the banking sector.
In other recent news, AEON Financial Service Co., Ltd has faced a downgrade from JPMorgan, with its stock rating reduced from Neutral to Underweight. This decision follows a review of AEON’s fiscal year 2024 results and fiscal year 2025 guidance, leading to a revised price target of ¥1,150. Analysts expressed concerns about AEON’s overseas business and the uncertain outlook for profitability improvement in its domestic operations. Meanwhile, JPMorgan Chase & Co. has successfully closed public offerings totaling $6 billion in Fixed-to-Floating Rate Notes. The offerings include $2.5 billion due in 2031 and $3.5 billion due in 2036, reflecting the firm’s strategy to manage its capital needs. Additionally, JPMorgan has pledged $14.5 million to support workplace and public benefits programs, aiming to improve financial health for low- to moderate-income Americans. The initiative includes investments in organizations like Commonwealth and Code for America to enhance access to essential benefits. Lastly, Madhu Namburi, a veteran technology banker at JPMorgan, is set to join venture capital firm General Catalyst as a managing director, co-managing its Creation fund.
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