Analyst Ratings Shifting toward ‘Hold’ for JPM and Bankers
In July 2017, 15 of the 27 analysts covering JPMorgan Chase (JPM) rated the stock a “buy” or “strong buy,” compared to 16 analysts in May 2017 and June 2017. The shifts in ratings reflect slower growth for the stock in upcoming quarters. Eleven analysts have assigned JPMorgan a “hold” rating, and one has assigned it a a “sell.” JPM’s one-year mean price target is $95.00 per share, implying a meager 3.0% rise from its current stock prices, compared to 31% growth in 2016.
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Lower expectations drawing holds
Commercial and investment banks (XLF) are reporting lower trading activity in 2Q17, as per expectations, and the trend is expected to continue—as management’s outlook reflects. For Bank of America (BAC), JPM’s major competitor, 22 of the 31 analysts covering its stock have given it “buy” or “strong buy” ratings in July 2017, compared to 23 out of 32 analysts in June 2017. Eight analysts have rated the company a “hold,” and one analyst rated it a “sell.” On the other hand, for Wells Fargo (WFC), 12 of the 30 analysts covering the bank have assigned it “buy” or “strong buy” ratings, 13 analysts have assigned it “hold” ratings, and five analysts have given it “underperform” or “sell” ratings.
In July 2017, 18 of 29 analysts have given Citigroup (C) a “buy” or “strong buy” rating, in line with ratings in the previous month. Nine analysts have assigned it a “hold” rating while two analysts have given it “underperform” or “sell” ratings.