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 (^GSPC) since the end of 2011:
data by YCharts
-- Written by Philip van Doorn in Jupiter, Fla.