NEW YORK (TheStreet) -- JPMorgan Chase (JPM) got an upgrade from Societe Generale analyst Murali Gopal Monday, who cited expected loan growth acceleration among other factors in lifting his recommendation to "buy" from "hold".
In addition to citing the potential for increased loan growth, Gopal noted "acceleration in the resolution of mortgage litigation," with some $23 billion in total settlements since the third quarter of 2013. The observation about mortgage settlements appears stale, however, since the JPMorgan settlements dominated headlines for several weeks and are now no longer on anyone's mind.
Gopal also sees a positive in that JPMorgan's balance sheet appears positioned to benefit from rising interest rates, particularly short-term interest rates. This is kind of meaningless since bank balance sheets are so complicated its very tough to know how they are positioned and my personal feeling is short term rates will stay where they are for at least another year.
Finally, Gopal noted JPMorgan has relatively little exposure to emerging markets. Indeed that relative lack of exposure has prevented it from suffering the selloff seen by Citigroup in recent weeks. But of course an emerging markets rebound wouldn't benefit the bank much either.