WFC - JPMorgan Chase: Just By Opening 500 New Branches It Could Potentially Generate Another $9.11B In Revenues

2024-06-10 08:54:09 ET

Summary

• JPMorgan Chase & Co.'s new fair price estimate is $222.86, 13% above the current stock price of $197.30, with projected annual returns of 7.6% through 2029.
• The bank reported an EPS of $4.63, beating consensus by 12%, and revenue of $41.93 billion, exceeding expectations by 0.5%.
• JPMorgan aims to open 500 new branches by 2027, focusing on low-income and rural areas, potentially adding $9.11 billion in revenue.
• JPMorgan is the best-capitalized among major banks, holding 12.86% of total US deposits, more than Bank of America and Wells Fargo.
• The fair price estimate has been adjusted due to financial changes and market conditions, with key risks including inflation, consumer financial health, and regulatory challenges.

Thesis

In my previous article on JPMorgan Chase & Co. ( JPM ), released on March 29, I rated the stock as a "strong buy", because according to my model, the estimated present fair price stood at $237.41, which was a potential 20.7% upside from the stock price at that time of $196.6. The model also suggested that the stock could deliver 17.8% annual returns throughout 2029.

JPMorgan reported Q1 2924 earnings on April 12. For that quarter, JPMorgan reported a quarterly EPS of $4.63, which beat the consensus by 12% ($0.50), and reported a revenue of $41.93B, which beat the consensus by 0.5% ($250M)...

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