NEW YORK (TheStreet) -- Shares of JPMorgan Chase & Co. (JPM) are rising, up 0.44% to $61.08 in afternoon trading Wednesday, following a price target increase to $69 from $64 this morning by analysts at Nomura.
The firm upped its price target after attending the bank's annual investor day on Tuesday, and reiterated its "buy" rating.
Nomura also raised its 2015 earnings estimate to $5.60 per share from $5.45 per share. It also increased 2016 earnings estimates to $6.95 per share from its previous $6.75 per share.
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Yesterday, JPMorgan announced plans to reduce about $1.4 billion in annual expenses through a cost cutting initiative in 2015, Reuters reports.
JPMorgan Chase, the largest bank in the U.S. by assets, is estimating that annual expenses will fall to about $57 billion in 2015 from $58.4 billion in 2014, Reuters added.
As part of its cost cutting initiative, the bank said it plans to close 5%, or 300 branches, by the end of 2016 as more customers move online, the Associated Press reports.
New York City-based JPMorgan Chase is a financial service firm and banking institution that provides investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management and private equity.
Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate JPMORGAN CHASE & CO (JPM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JPMORGAN CHASE & CO's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.29 versus $4.32 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $5.29).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, JPMORGAN CHASE & CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 88.82%. Regardless of JPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.20% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, JPM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: JPM Ratings Report