O'Connor said that his 2013 earnings estimate of $5.00 a share for JPMorgan "is now 10% lower than pre-CIO trading losses," reflecting "the elimination of earnings related to macro hedges, some de-risking of the securities book, modest market share losses in the core trading business and less share buybacks," which "are partially offset by tighter cost controls, higher mortgage and lower loan loss reserves."
Dimon said during JPMorgan Chase's second-quarter conference call that "hopefully, if all goes well, we can start buying back stock early in the fourth quarter," resuming the share buyback program that was suspended in May after the CIO hedge trading losses were first disclosed.
O'Connor said that Deutsche Bank has become "increasingly concerned" that "EPS expectations may be too high," and that "capital deployment may disappoint," since
"approval for meaningful buybacks in 4Q12/1Q13 is unlikely."
Deutsche Bank's price target for JPMorgan Chase is $40.00.
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Written by Philip van Doorn in Jupiter, Fla.