JP Morgan Is A Quality Core Holding But Analyst Presently Favors Bank Of America, Citi, US Bancorp

, Benzinga -  3:32 PM ET 4/14/2025 Investing Ideas

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On Friday, JPMorgan Chase & Co. ( JPM ) reported its first-quarter FY24 results.

Reported revenue rose 8% year-on-year (Y/Y) to $45.3 billion. Net revenue (managed) was $46.0 billion (+8% Y/Y), beating the consensus of $44.1 billion.

Net income rose 9% Y/Y to $14.6 billion in the quarter. EPS of $5.07 exceeded the consensus of $4.62. 

Also Read: Wells Fargo Is ‘Fairly Valued,' Its Conservative Approach ‘Feels Safer:' Analysts

Jamie Dimon, Chairman and CEO, said, "The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and "trade wars," ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility."

Oppenheimer analyst writes, "We had already haircut our investment banking expectations in our earnings preview to have 2025 roughly flat with 2024."

Oppenheimer says the biggest update to their future forecasts is raising their expected 2026 charge-off rate by 50%. This change is based on the idea that unemployment could rise from around 4% now to about 6% in 2026.

Analyst Chris Kotowski expects wealth and asset management revenues to drop, reflecting recent declines in the stock and bond markets. He's also taking out previous assumptions for loan growth in the second half of 2025 and in 2026.

However, he's keeping net interest income estimates mostly unchanged, believing the Federal Reserve probably won't make major rate cuts.

Analyst Kotowski adds, "Thus, it's not nearly the impact that one might have feared. Of course, there are many other moving parts and a wide range of potential outcomes given the now uncertain state of global trade. We continue to view JPM as a quality core holding in the group but presently still favor BAC, C and USB."

Price Action: JPM stock is down 0.23% at $235.67 at the last check Monday.

Read Next:

  • Goldman Sachs CEO Sees ‘Markedly Different Operating Environment' Entering Q2, Announces $40 Billion Stock Buyback

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