Citigroup (NYSE: C) analyst Keith Horowitz upgraded JP Morgan Chase & Co to a “Buy” rating on Friday from a “Hold” rating with a $48.00 target price on the company’s shares.
Horowitz noted that he believes the company has an attractive risk and reward profile and that the stock is currently at an excellent “entry point” after the bank has underperformed the financial sector as a whole this year.
JP Morgan Chase shares fell 6.6% yesterday after the Obama administration proposed new rules to limit proprietary trading at banks, which according to Horrowitz, “would have a limited 2% impact on normalized earnings-per-share … assuming forced divestiture of private equity.”
Horowitz’ research note continued, “The other risk is the impact of ‘size limits,’ but we assign a very low probability that J.P. Morgan will be forced to downsize its balance sheet given the impact on credit availability.”
