On Feb. 25, JPMorgan Chase (JPM) will greet its investors and try to paint a rosy picture of the future. Credit Suisse’s Moshe Orenbuch has a preview:
Getty Images We expect [JPMorgan] to highlight its growth opportunities as well as the inherent synergies across its businesses. We expect the tone to be constructive as the company makes progress addressing operational and risk management issues while continuing to invest in the business…
We think the long-term net income target could increase to $29Bn from$27.5Bn+/- which would put EPS roughly at ~$7.50 depending on the share count. While this EPS level may be somewhat aspirational over the near-term given environmental factors, we think the target is achievable over the longer-term as legal and mortgage expenses normalize and [JPMorgan] realizes benefits of its growth initiatives. We expect the firm-wide ROE target to remain unchanged at 16%+/-, although we think that the IB ROE target could move modestly lower to 15%+/- (from 16%+/-) given a reallocation of capital to the segment.
Shares of JPMorgan have ticked up 0.1% to $57.64 at 2:30 p.m. today, while Citigroup (C) has risen 0.3% to $48.29, Bank of America (BAC) is up 0.1% at $16.31 and Wells Fargo (WFC) has dropped 0.2% to $45.56.
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