Goldman Sachs Gets Bullish on JP Morgan, Downgrades Morgan Stanley (JPM, MS)
By: Dividend Daily
Posted on June 26, 2012 at 09:04 AM EDT
Analysts at Goldman Sachs on Tuesday offered some sharply diverging opinion on financial services giants JPMorgan Chase & Co. (JPM) and Morgan Stanley (MS). JPM Now a “Conviction Buy” The firm upgraded JPM to its “Conviction Buy” List with a $42 price target, suggesting a 19% upside to the stock’s Monday closing price of $35.32. [...]
Analysts at Goldman Sachs on Tuesday offered some sharply diverging opinion on financial services giants JPMorgan Chase & Co. (JPM) and Morgan Stanley (MS).
JPM Now a “Conviction Buy”
A Goldman analyst commented, “Since JPM announced the trading loss on May 10, shares have materially underperformed peers, down 13% versus the BKX down 6%. We continue to believe JPM has the earnings power and capital strength to offset the trading loss, given a diverse earnings stream (CIO is only 5% of average EPS), and strong capital position (9%+ Basel 3 Tier 1 Common by 2013 even with capital distribution), and believe the core strength of the franchise is being overlooked.”
Morgan Stanley Cut to “Neutral”
The analyst commented, “While our 2012 earnings estimates for MS already reflect the current challenging environment, as the most pure-play capital markets bank under coverage we believe investors are unlikely to give credit for any significant improvement in activity in 2013.”
JP Morgan shares rose 58 cents, or +1.6%, in premarket trading Tuesay, while Morgan Stanley shares fell 16 cents, or -1.2%.
The Bottom Line
JPMorgan Chase & Co. (JPM) and Morgan Stanley (MS) are both currently rated “Neutral” by Dividend.com.
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here