Key insights
- Piper Sandler lowered its price target for JPMorgan (JPM) from $345 to $325, citing reduced earnings per share estimates for 2026 and 2027. The firm adjusted its model to account for seasonal credit card fluctuations, a higher tax rate, and revised market fee expectations. While maintaining an Overweight rating, the lower target reflects a more conservative outlook on bank equity valuations. Jefferies also issued a Hold rating with a $310 target. The news has a slightly negative influence due to lowered expectations.
Investing.com - Piper Sandler lowered its price target on JPMorgan Chase & Co. stock (NYSE:JPM) to $325 from $345 while maintaining an Overweight rating.
The firm adjusted its earnings per share estimates for the bank. The 2026 EPS estimate was reduced to $21.65 from $22.58, while the first-quarter 2026 EPS estimate was lowered to $5.67 from $6.01. The 2027 EPS estimate was cut to $23.04 from $23.17.
The new price target reflects the reduced 2026 earnings estimate and lower bank equity valuations. The target represents approximately 15 times the firm’s 2026 earnings estimate. JPMorgan currently trades at a P/E ratio of 14.17, and according to InvestingPro analysis, the stock appears undervalued relative to its Fair Value. The platform identifies JPMorgan as a prominent player in the Banks industry with 15 consecutive years of dividend increases—one of 8+ ProTips available to subscribers, along with comprehensive Pro Research Reports that transform complex Wall Street data into clear, actionable intelligence.
Piper Sandler made three changes to its model. The firm adjusted for seasonal credit card fluctuations that could lead to reserve releases. It factored in a slightly higher tax rate than previously used.
The firm also revised its markets fee expectation to account for the possibility that more markets revenue flows into net interest income this year, which could be offset by lower markets non-interest revenue. Piper Sandler stated it may have been too optimistic on total markets revenues.
In other recent news, JPMorgan Chase & Co. received a Hold rating from Jefferies, which set a price target of $310.00. Jefferies highlighted JPMorgan’s strengths, including its scale and capital flexibility. Additionally, JPMorgan is involved in a $2.8 billion senior loan commitment for the One Beverly Hills development, a luxury mixed-use project in California. VICI Properties announced an increase in its mezzanine loan for this project to $1.5 billion, up from $450 million. Meanwhile, JPMorgan is also reportedly piloting a program to track junior bankers’ work hours using computer monitoring. In another development, both Goldman Sachs and JPMorgan are offering hedge funds strategies to bet against the $1.8 trillion private credit market. These recent developments indicate ongoing strategic initiatives and financial activities at JPMorgan Chase.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.