JPMorgan Chase & Co. (JPM) , a holding in Jim Cramer's Action Alerts Plus portfolio, is set to lay out a stellar plan for the future during its investor day on Feb. 27, Barclays analysts wrote in a note titled "Investor Day Preview: Raising the Bar Again."
"As in years past, we expect the company to present a positive and optimistic view," analysts wrote. "We expect it to once again center around its four flagship businesses keying in on their earnings power, competitive advantages, avenues of growth/profitability and technological advancements."
JPMorgan is unlikely to offer specific figures, but Barclays said it expects the bank to point to above-consensus earnings and dividend growth and "further improvement in its already peer leading" return on tangible common equity ratio.
According to FactSet analysts, JPMorgan is expected to register $8.76 in per-share earnings at year-end 2018. That would be a 27.5% increase from 2017 full-year earnings of $6.87.
Barclays said that at the investor day JPMorgan could raise its medium-term 15% ROTCE target to a "best in class" 17% and continue its capital deployment with a heavy payout ratio and large dividend bump to the tune of 50% or more.
JPMorgan could also provide more transparency on plans to improve its market-related revenue through growth in trading revenue for the first quarter and active M&A financing dialogue. Investors might expect more on increased net interest income through continued core loan growth, too, Barclays wrote.
Analysts said other headlines could include overhead ratio improvement; plans to take JPMorgan's branch footprint and deposit business national in order to complement other national businesses such as auto and mortgage services; and expectations for a "continued relatively benign asset quality backdrop."
Barclays said its has "long been attracted" to JPMorgan stock as both an offensive and defensive name, rating it overweight. Analysts assigned a $135 price target to the stock, implying upside of 17.3% from JPMorgan's Wednesday closing price. At the closing bell, shares finished trading higher 2.35% to $115.07.
"In the current improving economic environment, its strong market share in IB and trading, asset sensitive balance sheet, growing competitive advantages in its consumer businesses, cost controls, and capital deployment should benefit its valuation," Barclays said.
The investor day is typically a strong event for JPMorgan, Barclays noted. In eight of the past 12 years that the bank has hosted the event, JPMorgan stock has outperformed the KBW Nasdaq Bank Index by an average of 430 basis points over the following month.
"We believe this is in part due to the company telling a good story and addressing any investor concerns head-on," Barclays said. "We expect 2018 to be no different."
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