Will This Upgrade Help JPMorgan (JPM) Today? (Update)

Update (9:40 a.m.): Updated with Monday market open information.

NEW YORK (TheStreet) -- Societe Generale upgraded JP Morgan  (JPM) to "buy" from "hold" and set a $66 target price. The firm noted that JPMorgan would likely settle its mortgage litigation and stated that loan growth outlook is improving.

The stock was rising 0.34% to $56.81 at 9:38 a.m. on Monday.

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Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate JPMORGAN CHASE & CO (JPM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, 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:

  • The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 90.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.09% significantly outperformed against the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • JPMORGAN CHASE & CO's earnings per share declined by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, JPMORGAN CHASE & CO reported lower earnings of $4.32 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($6.00 versus $4.32).
  • JPM, with its decline in revenue, underperformed when compared the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: JPM Ratings Report

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