S&P Capital IQ Reiterates its BUY Rating on JP Morgan Chase, Target Price Reduced

October 14 00:00 2011

NEW YORK, October 14 (FinanaceEnquiry.com) – Analyst Erik Oja of S&P Capital IQ has reiterated his BUY rating on the shares of JPMorgan Chase & Co (NYSE: JPM), while reducing his estimates for the company. The target price has been reduced from $52 to $47.

Analyst Erik Oja, in a research note published yesterday mentions that the company reported Q3 EPS short of the estimates due to higher loan loss provisions. The performance of investment banking and trading fell significantly as compared to Q2, but credit card revenues, net interest income & mortgage fees were in line as expected, the analyst says. The EPS estimate for 2011 is cut down from $4.87 to $4.67. The target price from is reduced from $52 to $47 based on the forward four-quarter EPS estimate of $4.76. The analyst says that the quality of earnings have greatly improved as reserve releases were relatively small.