FBR Capital Maintains Bullish View on JPMorgan (JPM) Despite Weaker Revenue Guidance on Difficult Operating Environment

FBR Capital analyst Paul Miller reiterated an Outperform rating and $75 price target on JPMorgan (NYSE: JPM) following Q3 results which came with weaker revenue guidance.

Miller commented, "After the close, JPM reported 3Q15 earnings with a subdued tone, as continued low interest rates and market volatility in the quarter affected the company’s business. Further, litigation charges remained embedded as a constant in JPM’s reported results with no signs of letting up given a $1.3 billion provision in the quarter. The current environment has created difficulty in the bank space, as many banks are competing for a small subset of borrowers with high-quality credit for growth. This growth, along with expense cuts, remains the sole driver for earnings growth across much of the industry. However, we continue to recommend shares of JPM as we believe it has capitalized on expense cut opportunities, will continue to grow its loan book at a healthy rate in a challenging market, and will benefit from its diverse fee income businesses, likely allowing it to earn returns in excess of a majority of its large bank peers."

The firm is ddjusting FY15 GAAP EPS estimate to $5.97 from $5.71 and operating EPS estimate to $5.74 from $5.80. Further, they maintain FY16 GAAP EPS estimate of $6.45

For an analyst ratings summary and ratings history on JPMorgan click here. For more ratings news on JPMorgan click here.

Shares of JPMorgan closed at $61.55 yesterday.

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