Photo: Wikimedia Commons
Wall Street analysts often like to take long-term positions on stocks, which often come with 12-month price targets. So it’ll catch our eye when an analyst suggests a short-term trade in their research notes.
Morgan Stanley’s bank analyst Betsy Graseck did just that.
In a note to clients this morning, Graseck laid out three reasons and a catalyst that could boost JP Morgan shares relative to the rest of the sector.
From her note:
We believe the share price will rise relative to the industry over the next 60 days. Catalyst is JPM’s February 28 Analyst Day, where we expect JPM to: 1) show that it’s taking share across its businesses, 2) argue that Volcker Rule’s market making definition as proposed is workable, and 3) show that it’s managing expenses while continuing to reinvest in the business without losing share. We see potential for upward EPS revisions as JPM demonstrates share gains and efficiency saves. We estimate that there is a 70-80%, or “very likely”, probability for the scenario.