JPMorgan Chase has a rosy outlook ahead, according to Wells Fargo. Wells Fargo analyst Mike Mayo reiterated his overweight rating on shares of JPMorgan Chase and raised his price target to $320 from $300. His updated forecast implies that the stock could rally 20%. “JPMorgan Chase has excelled at both offense and defense over the past decade, in which it has been gaining market share in all major business lines, while optimizing its businesses, showing consistent earnings relative to other global banks, and creating a ‘fortress balance sheet’ (as defined by its CEO),” Mayo wrote. “JPM should reflect our ‘Goliath Is Winning’ theme, as greater offense is expected to play with est. ongoing market share gains and improving operating efficiencies.” JPM YTD mountain JPM YTD chart Mayo has renewed confidence in JPMorgan Chase’s ability to generate new deposits. New branches would eventually aid the bank’s earnings, justifying its premium valuation. “It has opened far more new branches than any other banks ( > 900 vs. > 200 for BAC and > 100 for FITB) and more than the rest of our universe combined. We are now more confident about the seasoning of its branches aiding earnings,” Mayo added. JPMorgan also remains the “Goliath of Goliaths” as one of the top bank picks across categories such as customers, retail deposits and cards, per Mayo. The bank currently boasts $4.4 trillion in assets and $173 billion in revenue. Shares of JPMorgan have added 11% this year. Analysts are somewhat split on the stock. LSEG data shows that 14 of 26 of those covering the bank rate it a buy or strong buy. The remaining 12 have a hold rating on shares.
