Jefferies Raises JPMorgan Price Target to $350 After Strong Q2 Results

Jefferies raised its price target for JPMorgan Chase & Co. (NYSE: JPM) to US$350 from US$340, while maintaining a Hold rating following the bank's stronger-than-expected second-quarter earnings. Based on JPMorgan's July 14 closing price of US$342.89, the revised target represents modest upside from current levels.

Second-quarter highlights

1. Earnings per share (EPS): US$7.70 (consensus: US$5.55)
2. Revenue: US$57.35 billion (consensus: US$50.61 billion)
3. Average deposits: Up 7% year over year
4. Consumer deposits: Increased 3%, exceeding Jefferies' previous expectations

Fee income performance

JPMorgan reported strong growth across several business segments:

1. Investment banking fees increased 30% year over year.
2. Equity capital markets recorded solid activity during the quarter.
3. Markets revenue rose by more than 30%, exceeding Jefferies' earlier projections.

According to InvestingPro, 13 analysts have recently revised their earnings estimates higher following the company's latest quarterly results.

Management also increased its full-year 2026 guidance for core net interest income while raising expense guidance, reflecting stronger revenue expectations.

Industry commentary

During the earnings call, Chief Executive Officer Jamie Dimon commented on U.S. bank capital requirements, stating that current regulations place a relatively heavier burden on large, diversified banks. The remarks highlighted ongoing industry discussions surrounding capital regulation.

Market focus

Market participants will continue to monitor deposit growth, investment banking activity and net interest income as important indicators for the U.S. banking sector.