U.S. banking giant JPMorgan Chase (JPM) is set to release its fourth quarter 2024 financials on January 15. Wall Street analysts expect the company to report earnings of $4.09 per share for Q4, up 34.5% year-over-year. However, revenues are expected to decrease by 33% year-over-year, reaching $41.9 billion for the quarter.
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It’s important to highlight that JPMorgan Chase’s stock gained about 48.6% over the past year, driven by strong financial performance, with a rise in earnings and revenue. The bank benefitted from increased trading and investment banking activity, as well as a favorable regulatory environment. Also, analysts’ optimism and positive outlooks supported the stock’s growth.
Analysts’ Opinions Ahead of JPM’s Q4 Earnings
As JPMorgan prepares to release its Q4 results, analysts remain divided. Five analysts maintain Buy ratings, while three have issued Hold ratings for the stock.
Among the more optimistic analysts, Ebrahim Poonawala of Bank of America Securities is positive about the bank’s future. He kept a Buy rating on the stock, expecting JPMorgan to keep outperforming the S&P 500 into 2025, driven by higher EPS growth and a supportive regulatory environment. Poonawala believes JPMorgan’s strong capital reserves and balance sheet will help it manage any potential economic downturns. He also expects an increase in EPS estimates due to higher interest rates and a rebound in net interest income.
Meanwhile, David Konrad, a five-star analyst at KBW, raised his price target to $257, citing higher NII and capital markets revenues. However, he maintained a Hold rating due to market risks, including potential credit cost increases, reduced loan demand, and margin pressure.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 3.85% move in either direction.
What Is the Price Target for JPM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JPM stock based on 10 Buys, six Holds, and one Sell assigned in the last three months, as indicated by the graphic below. The average JPM price target of $258.63 per share implies 5.90% upside potential.
