JPM Target Cut: Piper Sandler Adjusts for New Profit Outlook

Piper Sandler recently adjusted its price target for JPMorgan (NYSE: JPM) downwards, moving from $345 to $325, while maintaining its "Overweight" rating on the stock. This revision stems from updated earnings projections by the firm.

The financial institution's 2026 earnings per share (EPS) estimate was lowered to $21.65 from a previous $22.58. This included a reduction in the first-quarter EPS forecast from $6.01 to $5.67. Furthermore, the 2027 EPS outlook saw a minor decrease, settling at $23.04 compared to the earlier $23.17. The new price target reflects both these reduced earnings expectations and a more conservative approach to valuation, now valuing JPM at approximately 15 times its projected 2026 earnings.

Despite these changes, Piper Sandler holds a favorable view of JPMorgan, characterizing it as a robust and prudent investment choice amidst an uncertain economic landscape. The firm detailed several changes to its analytical model. These include better accounting for seasonal patterns in credit card performance, which could potentially lead to some reserve releases. An increased tax rate assumption was also integrated. Additionally, the analyst updated expectations regarding Markets revenue, anticipating that a larger portion of this activity might now be recognized as net interest income (NII) instead of non-interest revenue. While a higher NII from Markets had already been factored into prior estimates, this reclassification could be counteracted by a decrease in non-interest revenue, suggesting that earlier overall Markets revenue projections may have been overly optimistic.

According to Ranked Stocks' proprietary data, JPMorgan (JPM) holds an RS Score of 61.66, placing it in the 32.38th percentile within its country and the 30.67th percentile in its sector. Analysis of its underlying scores reveals strength in EPS Revisions, scoring 86.00. However, the stock shows weaker performance in Valuation (18.90), Growth (51.55), Profitability (10.14), and Momentum (56.73). Want to discover which stocks rank the highest? Start your free 7-day trial at rankedstocks.com.