JP Morgan (JPM): Armed With Bear, Ready To Kick Some Posterior

After recently meeting with Bill Winters, co-CEO of JP Morgan’s (JPM) Investment Bank, Credit Suisse sees JPM as having “every advantage at hand”. They believe the Bear Stearns acquisition, relative balance sheet strength and management stability all combine to give JPM clear earnings upside in a capital markets recovery:

Our thesis on JPM… with strength and stability in the senior leadership team, balance sheet strength (8%+ Tier 1) and competitive positioning, we expect JPMorgan to fundamentally outperform peers. Sustained share price outperformance relieson improving visibility of positive sequential EPS comparisons. We consider JPM a core financial services holding.

Credit Suisse maintains a target price of $55 and an OUTPERFORM rating.

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