JPMorgan downgraded to Perform on valuation at Oppenheimer

As previously reported, Oppenheimer downgraded JPMorgan (JPM) to Perform from Outperform on valuation. The firm notes that Wednesday, November 6 was a day unlike any, with the BKX up 10.7% versus S&P up 2.5%. The move brings the BKX to up 39.1% year-to-date versus 24.1% for the S&P and 14.6% for the equal weighted S&P. With this move, Oppenheimer’s commercial banking tracking group is now trading at a 74% relative price-to-earnings versus the equal weighted S&P, versus a historic average of 73%. Thus, the group is now fairly valued, but not overvalued, the firm argues. Oppenheimer is, however, moving to the sidelines on JPMorgan as the stock now trades essentially in line with its fair value model.