Stifel Nicolaus estimates that JPMorgan's 2014 ROA will be 0.95%. Mutascio said JPMorgan "now trades at the lowest P/E multiple within our large-cap bank coverage universe" -- 8.2 times versus 9.7 times, and that the company's "size, exposure to re-regulation, and the 'London Whale' fiasco all probably combine to play a role in the discounted valuation."
Still, Mutascio mused, why "should it trade at a 31% discount to Comerica, a 20% discount to SunTrust (STI), and a 19% discount to KeyCorp (KEY), all of which have the same, if not lower, projected ROAs than JPMorgan? These types of discounts seem a bit large to us."
Mutascio has "hold" ratings on U.S. Bancorp, Comerica, KeyCorp and JPMorgan Chase.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn
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