JPMorgan Executing Well In Challenging Times And Still Undervalued

This year is likely to be one where management and business quality, as well as past strategic decisions, really show up in the results of bank companies. Most banks will likely see net interest margins peak between Q4’22 and Q2’23, operating leverage will be harder to come by, deposit costs will rise and so too will credit costs. With above-average funding, loan growth and market share growth prospects, and fee-generating businesses, I think JPMorgan (NYSE:JPM) is better placed than most, though I do acknowledge that operating leverage could still prove to be a headwind for this large bank.

My last update on JPMorgan was fairly recent, but the shares have continued to outperform since then, as well as outperforming over the past six and 12 months. My core assumptions haven’t changed that much, though my 2023 numbers are a bit higher now. I’m expecting long-term core growth in the 4% to 5% range, driven not only by fee-generating businesses like its payment operations, but share gains in commercial lending as well. Below the high-$140s to low-$150s I believe these shares are worth consideration.

The full article can be found here: 

JPMorgan Executing Well In Challenging Times And Still Undervalued