JPMorgan's shares closed at $41.26 Wednesday, returning 27% year-to-date, following a 20% decline during 2012. The shares trade for 1.2 times tangible book value, and for eight times the consensus 2013 EPS estimate of $5.20.
The consensus is for JPMorgan to post third-quarter earnings of $1.17 a share. This would be a slight decline from the second quarter, when the company managed to show a profit of $5.0 billion, or $1.21 a share, despite taking a $4.4 billion pre-tax loss from hedge trading activity by its Chief Investment Office.
Hawken estimates that JPMorgan Chase will earn $4.85 a share for all of 2012, followed by EPS of $5.45 in 2013.The analyst said that "while we are keeping our Buy rating on JPM shares, we believe that stock is vulnerable to the same pressures affecting the group and upside from current levels is likely more limited," adding that "there is likely still a discount being applied to the stock after the CIO trading loss." "We believe this discount could allow investors to generate excess returns although it may require a longer time horizon," he said. MS data by YCharts
Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
Email. Follow @PhilipvanDoorn