周三，摩根大通的股价创下历史新高，成为推动银行业板块大涨的关键力量之一，此次上涨不仅提升了大型和地区性银行的股价，也提振了私募股权公司和支付公司的股价。Analysts are advising clients to sell J.P. Morgan shares, believing it has become too expensive after hitting a record high.
The Zhitong Finance App learned that J.P. Morgan Chase (JPM.US) stock price fell 4.27% after an analyst advised customers to sell the stock, believing that it had become too expensive after reaching a record high.
Baird analyst David George wrote in a report that although J.P. Morgan Chase has “size, skill, and dominant market share” in its business area and can be called “the best in its class,” the balance between risk and return is not attractive at the current price, so “investors are advised to make a profit settlement.”
On Wednesday, J.P. Morgan Chase's stock price hit a record high, becoming one of the key forces driving the banking sector's sharp rise. This rise not only raised the stock prices of large and regional banks, but also boosted the stock prices of private equity firms and payment companies.
Investors are optimistic that Trump's re-election could bring more friendly regulation, driving large financial exchange-traded funds (ETFs) to soar. Shares of J.P. Morgan Chase rose 11.5% on Wednesday, the biggest one-day gain since November 2020. However, shares fell 4.5% on Thursday, while the S&P 500 rose 0.8%.
Despite the market's optimistic expectations for a relaxed regulatory environment and a more growth macroeconomic agenda, Baird believes there is limited room for growth in J.P. Morgan Chase stock.
George pointed out that J.P. Morgan's market value is about 2.6 times its tangible book value — this indicator excludes goodwill and mainly measures the company's intrinsic value. Furthermore, its share price is equivalent to more than 14 times the expected earnings per share in 2026. George also reminded investors that in recent quarters, J.P. Morgan Chase said it would not buy back shares at current prices.
J.P. Morgan CEO Jamie Dimon bluntly stated in his May Investor Day speech: “To make a clear statement: we will not be buying back stocks on a large scale at these prices. We don't think of share buybacks as returning cash to shareholders, but rather funds to withdrawing shareholders. We would prefer to support our current shareholders.”
George wrote in Wednesday's report that while improvements in the regulatory environment may bring about potential capital easing, management's willingness to repurchase shares may not match the high expectations of the market.
