Action Alerts Plus holding JPMorgan Chase & Co. (JPM) - Get Report is feeling the love ahead of its investor day this week. According to analysts at Credit Suisse, the bank represents some of the crème de la crème in its sector.
"We continue to recommend purchase," analysts wrote on Monday, Feb. 26. "JPMorgan is most representative of the value inherent in the universal banking model."
JPMorgan has best-in-class execution with sustainable organic revenue growth and market share gains, willingness and capability to drive down operating unit costs and the wherewithal to optimize capital, analysts noted. Because of that, JPMorgan has teed up better-than-average earnings growth and returns on equity, supporting share price outperformance.
Credit Suisse rates JPMorgan stock as outperform with a $125 price target. The target represents about 6.5% in upside for shares, which traded higher 0.33% at midday Monday.
JPMorgan hosts its annual investor day on Tuesday, Feb. 27. Credit Suisse analysts said they expect the presentations to highlight the bank's competitive positioning and potential plus confidence in the ability to meet raised medium term financial targets. The expected raised targets are set to reflect what Credit Suisse sees as JPMorgan's ability to deliver sustainable GDP revenue growth and meaningful operating leverage.
Key among the expected hiked financial targets is JPMorgan's return on tangible equity. At the previous investor day, the bank was targeting about 15% ROTE. "With solid macro support, we see upside to a 15% to 18% target ROTE in the near/medium term, even with what we expect to be a business plan based on significant reinvestment in the franchise," Credit Suisse wrote.
"As in years past, we expect the company to present a positive and optimistic view," Barclays analysts wrote in a note on JPM's investor day earlier this month. "We expect it to once again center around its four flagship businesses keying in on their earnings power, competitive advantages, avenues of growth/profitability and technological advancements."
JPMorgan stock has gained 30% in the past year, nearly doubling the S&P 500's 16.6% gain in the same period.