MS - JPMorgan Morgan Stanley SVB Financial upgraded to Outperform at Oppenheimer

Oppenheimer analyst Chris Kotowski upgraded JPMorgan Chase (NYSE:JPM), Morgan Stanley (MS), and SVB Financial (SIVB) to Outperform from Perform as the banking sector, overall, has underperformed the broader market in recent weeks. The three banks are "strong companies that we have long admired but until recently thought were relatively more fully valued," Kotowski wrote in a note dated Tuesday. "By our valuation model, each has ~30%+ upside potential in the 12-18 months ahead." JPM, MS, SIVB, and the KBW Nasdaq Bank Index (BKX) all lagged the S&P 500 Index in the past six months as seen in this chart. While macroeconomic risk has risen due to Russia's war on Ukraine, the analyst reasoned: "We are not economists, but think it is unlikely we go straight from labor shortages to recession." In addition, the U.S. economy has a history of persevering "through so many massive human tragedies over the past 70

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JPMorgan, Morgan Stanley, SVB Financial upgraded to Outperform at Oppenheimer