Goldman Sees Upside for JPMorgan
- Goldman Sachs recommends purchasing JPMorgan’s January call options, specifically the $172.50 calls expiring on Jan. 24, ahead of the bank’s earnings report.
- The options trading activity suggests a potential 3% swing in the stock price, in line with its average earnings move over the past eight quarters.
- Analyst Richard Ramsden from Goldman Sachs expects JPMorgan to beat consensus estimates on pre-provision net revenue due to higher net interest income and lower core expenses.
- Ramsden is optimistic about JPMorgan's franchise value and upside to "best-in-class" revenue despite industry challenges such as deposit pricing, weak loan growth, and credit normalization.
- He also anticipates that JPMorgan will exceed consensus expectations for net interest income by 1% and core expenses should be 16% lower than Street forecasts.
- Despite slipping 0.4% since the start of 2024, JPMorgan shares had climbed nearly 27% in the prior year.
- Ramsden believes an eventual recovery in the investment banking business this year can offset lower trading fees and that the bank can increase buybacks earlier than previously anticipated. $JPMorgan(JPM.US$ $Goldman Sachs(GS.US$
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