JPMorgan's (JPM) Q2 Results Make Stock a Buy, UBS Analyst Tells Bloomberg TV

JP Morgan Chase's strong 2016 second quarter report showed investors that this is 'the type of stock' to own, UBS' Brennan Hawken said on Bloomberg today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- JPMorgan Chase's  (JPM) - Get Report strong 2016 second quarter earnings report showed investors that this is the stock to own, UBS equity research analyst Brennan Hawken said on "Bloomberg Markets" Thursday.

"We saw strong results especially in the markets' revenue lines, which help with the revenue beat. JPMorgan is always viewed as a strong risk manager and in volatile times like this, this is the type of stock that investors want to own. We saw proof of that in the results today," Hawken explained.

Before today's market open, JPMorgan reported second quarter earnings of $1.55 per share, higher than analysts' expectations of $1.44 per share. The firm posted revenue of $25.2 billion, beating Wall Street estimates of $24.16 billion.

"Unfortunately," there will be a seasonal slowdown in July and August for financial institutions, as always, "but that's largely expected" and "embedded in our numbers," Hawken noted.

"JPMorgan did remarkably well. It's my sense that the strength that they have in their macro businesses (FX and rates businesses) were probably really helpful," he stated.

When comparing JPMorgan to its "peers," Citigroup (C) is the next likely firm to report a strong quarter, Hawken added. Citigroup is expected to release its 2016 second quarter report before tomorrow's opening bell.

UBS currently has a 'neutral' rating on JPMorgan with a $50 price target.

Shares of JPMorgan are rising by 2.25% to $64.58 early Thursday afternoon.

Separately, TheStreet Ratings rated JPMorgan as a "buy" with a score of A-.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

This is based on the convergence of positive investment measures, which can be seen in multiple areas, such as its expanding profit margins and attractive valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: JPM

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