JPMorgan (JPM) battle tested and aided by its ‘fortress balance sheet’ – Wells Fargo
By Sam Boughedda
Wells Fargo upgraded JPMorgan (NYSE:JPM) to Overweight from Equal-Weight, raising its price target on the stock to $155 from $148 per share in a note Monday, stating that “Goliath is Winning.”
“JPM is battle-tested through downturns, aided by its ‘fortress balance sheet,'” wrote Wells Fargo analysts. “As the largest US bank, it epitomizes bank industry de-risking that has taken place since the GFC in terms of leverage (almost 1/3 as much), liquidity (est. 50%+ more), and losses (structurally lower.”
The analysts believe that recent industry developments should further JPMorgan’s ability to gather core funding and act as a source of strength.
“JPM has gained meaningful market share in each of its business lines (roughly 10% share on avg.), and has previously excelled in times like these when other financial firms have issues,” they added.
“This is aided by its multi-channel, multi-product, and multi-geographic approach—i.e, diversification benefits offense, too. We are incrementally more positive on JPM’s near-term deposit outlook and, hence, its target for NII growth in 2023.”