Zacks Investment Research upgraded shares of JPMorgan Chase & Co. (JPM) from UNDERPERFORM to NEUTRAL on July 08, 2014, with a target price of $59.00.
We are upgrading our recommendation on JPMorgan to Neutral based on the streamlining initiatives being undertaken to improve efficiency and focus on core operations. The company failed to overcome the tough industry backdrop and missed the Zacks Consensus Estimate in the first quarter of 2014. Lackluster consumer and corporate activities, weak trading volumes and sluggish mortgage banking dragged the results. While its prudent expense management was reflected in the non-interest expenses, pressure on the top line and higher-than-expected provision dominated. We anticipate continued synergies from business diversification, steadily improving retail banking performance, cost containment efforts and a strong capital position. Nevertheless, pressure on net interest margin, a stringent regulatory environment, lower level of client activity and investigations and litigations remain major near-term concerns.
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