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 since the end of 2011:

JPM Chart data by YCharts

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-- Written by Philip van Doorn in Jupiter, Fla.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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