Jefferies upgrades JPMorgan Chase to buy from hold ahead of Q2 profit update

Jefferies analysts on Tuesday upgraded their rating on JPMorgan Chase & Co.
JPM,
+0.56%
to buy from hold and raised their price target by 11% to $165 a share. “While JPM has been a recent winner, we upgrade the stock to buy given a stable earnings outlook, best-in-class return on equity profile, conservative reserving history, and better revenue diversity,” analyst Ken Usdin said in a research note. JPMorgan reports second-quarter earnings on Friday. Overall, Jefferies said it continues to prefer trust banks Bank of New York Mellon
BK,
-0.61%
and State Street Corp.
STT,
+0.84%
and broker dealers Goldman Sachs Group Inc.
GS,
+0.41%
and Morgan Stanley
MS,
+0.05%
ahead of most regional banks given their smaller net interest income burdens, and more stable pre-provision net revenue and minimal credit risk. Jefferies also downgraded Truist Financial Corp.
TFC,
+0.97%,
Zions Bancorp
ZION,
+2.00%
and Hancock Whitney Corp.
HWC,
+1.11%
to hold from buy on downward revisions to net interest income and “limited differentiating catalysts.” JPMorgan Chase stock is up 1.1% in premarket trades, while Truist is down 0.8%, Zions is off by 2.2% and Hancock Whitney is unchanged.