Mutascio on Wednesday said JPMorgan represented the best value for investors in an overvalued banking sector, saying the bank was trading at a 16% discount to the median large-cap bank on a price-to-earnings basis. The analyst cited JPMorgan's highly liquid position as long-term rates rise, and also touted the firm's cost-cutting efforts. "JPM's cost containment efforts have been one of the most impressive in the group when looking at a year-over-year personnel expenses (down 2.3% year-over-year versus the median increase of 2.6%)," he said.
Mutascio's price target for JPMorgan's shares is $58, which implies little upside from Wednesday's closing price of $54.83, but the analyst called his price target "conservative."
JPMorgan also pays a quarterly dividend of 38 cents a share, for a yield of 2.77%. The company was approved by the Federal Reserve in March to repurchase up to $6 billion in common shares through the first quarter of 2014.
Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
-- Written by Philip van Doorn in Jupiter, Fla.