Rochdale Securities analyst Dick Bove said he’s really bullish on JPMorgan Chase this morning on Bloomberg TV.
The bank analyst has issued a strong buy saying JPMorgan is undervalued and currently selling at a discount to book value. He also has a $45 share price target for the bank.
The reason he’s so bullish, he explained, is that the company is a huge generator of profit and it’s a “well-run” company.
Last month, JPMorgan disclosed a $2 billion trading loss in the bank’s Chief Investment Office in London related to derivatives trades.
“I think the trading loss will ultimately be about $4 billion,” Bove said. “I think it was proprietary trading. I think there is nothing positive to be said about it. Again, relative to the size of a $2.3 trillion size institution it’s pretty hard to get upset over.”
However, Bove said he thinks the trading loss does tarnish Dimon’s image because “it was not expected to happen at a bank like this.”
Yesterday Dimon appeared before the Senate Banking Committee in Washington, D.C. to testify about the multi-billion dollar trading loss. Check out what he said here >
Here’s Bove on Bloomberg TV’s In Business.