Uninspiring core profits (usually referred to as pre-provision operating profit) has become a theme for JPMorgan Chase (NYSE:JPM),
and once again, this giant U.S. bank delivered a result that was shy of
analyst and investor expectations. Add in some concerns about
potentially higher capital requirements and a 10-year interest rate back
below 2%, and I don't blame investors for selling this bank.
That
said, I am still holding on to these shares, and I continue to believe
that the Street underestimates the core earnings potential of this bank.
JPMorgan is definitely levered to higher interest rates, but management
has its own internal levers to pull as well - particularly where it
concerns ongoing expense reductions and growing its commercial bank
operations. With the shares looking 15% to 20% undervalued, I continue
to believe JPMorgan is one of the better alpha opportunities among the
large banks.
Read the full article here:
JPMorgan Chase Once Again Fails To Inspire
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