JPMorgan Chase & Co. (JPM) Upgraded to Neutral Despite Valuation Concerns

JPMorgan Chase & Co. (NYSE:JPM) is among the most profitable mega cap stocks to buy. On February 3, Baird upgraded JPMorgan Chase & Co. (NYSE:JPM) to Neutral from Underperform and set a price target of $280. At the lowest 1-year price target, the firm’s estimate implies a 13.07% downside.

This upgrade comes after JPM’s weak performance, as shares have fallen 3.94% YTD in contrast to the KBW Bank Index’s 4% appreciation and the KBW Regional Banking Index’s 8% surge, the firm said. While noting JPMorgan Chase & Co. (NYSE:JPM)’s solid positioning in expanding market share, the firm highlighted that the company’s current valuation remains relatively expensive. Baird cited the company’s “enviable capital position,” which offers flexibility for both investment and capital returns.

To sum it up, the firm pointed out that although it does not advise including JPMorgan Chase & Co. (NYSE:JPM) shares at the current price, there is “less upside to maintaining a short position ahead of potential bank deregulation.”

Later on February 6, TheFly reported that HSBC upgraded JPMorgan Chase & Co. (NYSE:JPM) to Hold from Reduce, keeping a price target of $319. Slightly below the current price, the firm’s target translates to a downside potential of approximately 1%.

JPMorgan Chase & Co. (NYSE:JPM) is a New York-based financial services company operating through three segments: Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management.

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