- Goldman Sachs maintains an "Outperform" rating on JPMorgan Chase but lowers its price target from $398 to $392.
- JPMorgan Chase reported adjusted earnings of $5.75 per share, missing consensus estimates and ending a 17-quarter beat streak.
- Despite the earnings miss, JPMorgan Chase retains a profitability advantage and stronger dividend growth record compared to Citigroup.
Goldman Sachs (NYSE: GS) maintains its Outperform rating on JPMorgan Chase (NYSE: JPM) but lowers its price target to $392 from $398. JPMorgan trades at $331.43 when the update is posted. The new target is $60.57 above that price; a price target is an analyst’s estimate, not a guaranteed future price.
JPMorgan is a major bank with consumer, commercial and investment banking businesses. It competes with banks including Citigroup (NYSE: C). In the third quarter, JPMorgan reports adjusted earnings of $5.75 per share, below the Zacks consensus estimate, as highlighted by Zacks. The provided report does not give the estimate.
The miss ends a 17-quarter run of beating earnings estimates. Weak commercial and investment banking results contribute to the shortfall, as highlighted by Seeking Alpha. JPMorgan also raises its full-year outlook for net interest income—the difference between interest earned on loans and investments and interest paid on deposits and other funding.
JPMorgan retains a profitability advantage over Citigroup and has a stronger record of dividend growth, while Citigroup offers a higher dividend yield, as highlighted by Zacks. JPMorgan is down $2.87, or 0.86%, at $331.43. Its shares trade between $279.10 and $366.50 over the past year.
