- The stock price of JPMorgan Chase & Co. (NYSE: JPM) has received a price target increase from $150 to $160 by Wells Fargo. These are the details.
The stock price of JPMorgan Chase & Co. (NYSE: JPM) has received a price target increase from $150 to $160 by Wells Fargo. Wells Fargo analyst Mike Mayo analyst is also maintaining an “Overweight” rating on JPMorgan shares due to strong Q4 results. Mayo had upgraded JPM to reflect higher net interest income than previously modeled given the comments from the management, the lower share count, and better credit trends.
On Friday, JPMorgan announced its fourth-quarter profits on record trading results and the company also received a boost from releasing money that was previously set aside for loan losses. JPMorgan had reported $30.16 billion in revenue and $3.79 of earnings a share.
JPMorgan CEO Jamie Dimon had cited 2 major developments that occurred in late 2020. This includes effective coronavirus vaccines and another round of government stimulus. This is why the company took down the reserves.
Specifically, JPMorgan released $2.9 billion from its cash pile, which was set aside for expected loan defaults for the quarter. This led to a $1.9 billion boost, following about $1 billion in charge-offs.
“While positive vaccine and stimulus developments contributed to these reserve releases this quarter, our credit reserves of over $30 billion continue to reflect significant near-term economic uncertainty and will allow us to withstand an economic environment far worse than the current base forecasts by most economists,” said Dimon in a statement.
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