Analyst action and valuation
Keefe, Bruyette & Woods reiterated an Outperform rating on the shares of JPMorgan Chase & Co. (NYSE:JPM) and left its price target at $363.00 following the bank’s recent investor update. The firm said its positive view reflects JPMorgan’s wide-reaching franchise and the returns highlighted in the company’s presentation.
Franchise and returns
The analyst note emphasized JPMorgan’s standing within the firm’s KBW Triple Crown rankings, describing the bank as a leader. Management’s formal through-the-cycle return on tangible common equity target of 17% was reiterated by the bank, and Keefe, Bruyette & Woods expects JPMorgan to surpass that objective by roughly 300 basis points in both 2026 and 2027, even after accounting for elevated investment spending.
Earnings outlook and scenario framing
Keefe, Bruyette & Woods lifted its earnings per share estimates for JPMorgan by between 1% and 2%, reflecting improved revenue assumptions. The analyst also presented updated bull and bear case scenarios for the firm, while third-party InvestingPro analysis referenced in the note characterized JPMorgan as appearing undervalued at current market levels.
InvestingPro commentary included the long-running dividend record for JPMorgan, noting the company has increased its payout for 15 consecutive years and offering additional ProTips for subscribers.
Meaning of the rating
The Outperform designation signals that Keefe, Bruyette & Woods expects JPMorgan shares to outperform the broader market or comparable peers over the next 12 months.
Other items highlighted in the note
- Mavis Tire Express Services Corp. is preparing an initial public offering that could raise approximately $2 billion, with Bank of America and Goldman Sachs engaged and the IPO potentially occurring as soon as this year.
- JPMorgan Chase & Co. has accused President Donald Trump of "fraudulently" naming CEO Jamie Dimon in a lawsuit tied to closed accounts. The bank is seeking to remove the case from Florida state court to federal court in Miami and plans to transfer it to New York thereafter.
- JPMorgan has announced plans to open more than 160 new branches across 30 states and renovate nearly 600 locations in 2026, as part of a broader three-year program to open over 500 new branches and renovate about 1,700 locations.
- The White House has urged JPMorgan’s CEO Jamie Dimon to reduce credit card interest rates under an affordability initiative. Separately, White House trade adviser Peter Navarro criticized Dimon for high interest rates during an interview on Bloomberg Radio.
Contextual note
The analyst report, investor update details, and the ancillary developments listed above form the basis for Keefe, Bruyette & Woods’ maintained price target and rating. The research house’s expectations for above-target returns in 2026 and 2027, along with modest upward revisions to EPS, underpin its Outperform stance.
Summary takeaway
Keefe, Bruyette & Woods continues to favor JPMorgan based on the bank’s franchise scale and return profile, holding a $363.00 price target and projecting returns above management’s through-the-cycle goal despite ongoing investment outlays.