JPMorgan pointed out that its tangible book value per share rose to $39 in 2012 from $19 in 2006. Kotowski pointed out that the company had achieved a compounded annual growth rate of 12% "in the midst of the worst financial crisis since the Great Depression."
Next: Stress Test Results
The Federal Reserve will announce the results of its annual
on the nation's largest banks on March 7. These results will gauge the banks' ability to withstand a "severely adverse scenario" that includes a brutal recession beginning this year, while still remaining well capitalized.
The more important date for investors is March 14, when the Fed announces the results of the Comprehensive Analysis and Review (CCAR) of the banks' capital plans through the first quarter of 2014.
JPMorgan Chase is paying a quarterly dividend of $0.30 a share, which translates to a yield of 2.52% based on Tuesday's closing share price.
Bank of America Merrill Lynch analyst Erica Penala in a report on Wednesday said that her earnings estimates for JPMorgan assume "$5bn in dividends and $10bn in share buybacks" during 2013, with the quarterly dividend rising to $0.32.
Penala rates JPMorgan a "buy," and on Wednesday raised her price objective for the shares to $55.00 from $52.00. The analyst also raised her 2013 EPS estimate to $5.85 from $5.70 and her 2014 EPS estimate to $6.00 from $5.92, based on expectations of net income "stability" and a "continued reserve release" in JPMorgan's credit card business.
"JPM remains the cheapest P/E stock in our coverage universe" based on her firm's estimates, Penala wrote, adding that "if the market continues to sell risk, JPM should outperform its peers."
-- Written by Philip van Doorn in Jupiter, Fla.