JPMorgan Chase & Co. (NYSE:JPM) is the greatest bank of all time — at least according to one venerable Wall Street analyst.
Banking sector expert Dick Bove of the Vertical Group recently heaped praises upon the Jamie Dimon-run financial services giant, and CNBC has more details on the ultra bullish call:
“My view of this company is that it is probably the best bank I have ever followed in 5 decades of analyzing companies,” Bove told clients in a note.
He is keeping his buy rating on J.P. Morgan as the stock already has gained more than 5 percent in the new year. The company last week posted quarterly earnings of $1.76 a share on revenue of $25.45 billion, both well ahead of consensus estimates.
Though Bove himself, in a CNBC interview, called the results “mediocre,” he sees the environment overall for banks as highly conducive to large profits and sold gains for share prices.
Accordingly, Bove set a $128.45 price target on JPM, suggesting a 14% upside to current levels.
“It appears that in 2018 the banking industry and JP Morgan Chase will enter a new financial world which will provide this company with further opportunities to grow,” the analyst wrote. “In the new era, it is very possible that the valuation of JP Morgan and its industry will expand, a process that is already well underway.”
Most analysts agree that U.S. banks will see big benefits from Washington’s impending corporate tax cuts. JPM said recently that its effective tax rate should be around 19% this year — a pittance compared with its 35% rate from 2017.
JPMorgan Chase & Co. shares rose $0.05 (+0.04%) in premarket trading Friday. Year-to-date, JPM has gained 6.61%, versus a 4.57% rise in the benchmark S&P 500 index during the same period.