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Shares of JPMorgan Chase ( JPM) closed at $38.30 Wednesday, returning 16% year-to-date. Based on a 25-cent quarterly payout, the shares have a 2.61% dividend yield.

O'Connor's price target for JPMorgan is $45.00, and he estimates the company will earn $4.48 a share in 2012, followed by earnings of $5.40 a share in 2013.

The analyst says that JPMorgan's "market share gains have been impressive in capital markets and credit card," with the company remaining "#1 in global investment banking fees in 2011," while gaining 3% "of sales volume market share vs. peers over the past five years" in tis credit card business, and achieving a second-place ranking.

Looking forward to an eventual housing recovery, O'Connor says that JPM has "about $2b/qtr. of elevated mortgage servicing costs that could normalize closer to $200m/qtr," and that he expects the company to release another $10 billion to $12 billion in loan loss reserves over the next three to four years.

Among risks to JPMorgan Chase, according to O'Connor, is the company's size, making "it more challenging to grow," the industry pressure on net interest margins, and elevated regulatory risk from the Volcker Rule, as well as mortgage litigation expenses and risk from "the pending credit card interchange suit" against Visa ( V) and many of the largest U.S. banks.

Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.

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