JP Morgan Downgraded, Bank Of America And Wells Fargo Upgraded: What’s Behind Deutsche Bank’s Latest Analyst Ratings?
Deutsche Bank analyst Matt O-Connor revised ratings on JP Morgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC).
JP Morgan: The analyst downgraded the rating to Hold from Buy while retaining the price target at $235.
The analyst writes that JPM shares have led bank stocks YTD with a 30% gain driven by higher net interest income, strong trading results, recovery in investment banking, and solid credit conditions, aside from credit card normalization.
However, with a lot of positive news already priced in, the analyst sees a limited near-term upside.
O-Connor expects flattish EPS in 2025, with pressures on net interest income and ongoing investment spending likely offsetting gains in fee revenues.
While buybacks are expected to increase, the current share price may be too high for JPM to ramp up buyback activity significantly, adds the analyst.
Read: JPMorgan Sued For Allegedly Profiting …
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