After an upgrade from Morgan Stanley, JPMorgan now has no Sell Ratings.
Bloomberg -- JPMorgan Chase Co. shares no longer have any sell ratings on Wall Street.
The Jamie Dimon-led bank was upgraded by two notches to a buy-equivalent rating at Morgan Stanley, which said the lender is more resilient than rivals during downturns. The upgrade, by analyst Betsy L. Graseck, leaves JPMorgan with no sell or equivalent ratings among analysts tracked by Bloomberg.
Graseck wrote in a note to clients that JPMorgan s price-to- earnings multiple didn't drop as much as peers during past recessions. She said that the bank is making progress on meeting higher capital requirements and that the cost management is improving, with operating leverage turning positive.
In a hard landing bear case scenario, JPM has historically de-rated less than peers in the recession, Graseck said. She raised her price target to $153, suggesting a 16% upside to Monday s close.
On Tuesday, JPMorgan shares rose by as much as 2.9%. They have fallen 17% this year, outperforming a 21% drop for the S&P's Banks Index.
With the recession looming, analysts are looking for parallels in the Great Financial Crisis. During 2008, JPMorgan's shares fell 28%, while its main rivals - Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. - all fell more than 60%.
JPMorgan shares are trading at 10.3 times forward earnings, according to the current valuation. That is not much above their trough in the past two decades, while peers have a lot more to fall to their trough valuations, Morgan Stanley said.
The move follows a good few months for the biggest US bank, which in October reported its highest quarterly net interest income and raised its guidance for the year as it benefits from the Federal Reserve's interest-rate hikes. Jamie Dimon said he doesn't think the US can avoid a recession at the time.
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