© Reuters. JPMorgan (JPM) premium valuation has now returned, Citi cuts to neutral
On Wednesday, Citi analysts downgraded JPMorgan (NYSE:) to Neutral with a $160 per share price target.
The analysts explained to investors in a note previewing U.S. bank stocks’ second-quarter earnings that the JPM downgrade is based on its valuation.
“JPM is viewed as a high-quality franchise with a strong management team and balance sheet and in turn is rewarded with a premium valuation,” explained the analysts.
They added that “JPM has been a top performer YTD as the market shifted towards higher-quality names following the regional bank turmoil in March/April and at current levels of ~2x TBV and ~10.5x 2024 EPS.”
However, they believe the bank’s premium valuation has now returned, and as a result, they are moving to the sidelines. JPMorgan shares are up around 0.8% Wednesday, trading around the $148.55 mark.
