The limited earnings growth potential over the near term, along with the possibility of continued earnings volatility from litigation charges, "warrants a modest discount" for JPMorgan's stock against "more benign regional peers," Miller added. He estimates the bank will earn $6.10 a share this year, with EPS rising to $6.30 during 2015.
While conceding that JPMorgan's size exposes the company to "greater headline risk than smaller, regional peers," Miller wrote that "investor fatigue is a possibility if these [litigation] losses continue to extend out."
JPMorgan's shares were down 0.3% in premarket trading Wednesday, to $57.59.
The following chart shows the performance of JPMorgan's stock against the KBW Bank Index and the S&P 500
data by YCharts
-- Written by Philip van Doorn in Jupiter, Fla. Follow @PhilipvanDoorn
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts