CFRA analyst Kenneth Leon on Tuesday upgraded JPMorgan Chase (NYSE:JPM) stock to Buy from Hold on the view the bank is set to “accelerate growth and margins from businesses positioned in the capital markets.”
That includes trading, equity and debt underwriting, in addition to M&A advisory fees and fee growth from asset and wealth management, Leon wrote in a note.
“With expected rate cuts and U.S. economic growth near 2.0%, we believe net interest income (NII) will make up lower rates with higher loan volume activity in both consumer and commercial,” he added.
JPM shares ticked up 0.2% in after-hours trading.
The lender’s Q2 earnings and revenue both topped the average analyst estimate, with especially strong year-over-year growth in Markets, particularly in equities, and Asset & Wealth Management.
CFRA’s Buy rating compares with the SA Quant system rating of Hold, as well as the average SA analyst and the average Wall Street analyst, both at Buy.