JPMorgan Slips as Morgan Stanley Sees Fewer Benefits From Rate Cuts

JPMorgan Chase & Co. has been the best performing big bank stock since the Federal Reserve started hiking interest rates more than two years ago. But as the US central bank begins to unwind those moves, Morgan Stanley says it’s time for investors to wait before they buy more shares.

Analyst Betsy Graseck downgraded the bank led by Jamie Dimon to equal-weight from overweight, a rating she’s had on the stock since December 2022. Graseck also adjusted her price target on the stock, lifting it slightly to $224 — implying a 6% increase from Friday’s close. JPMorgan shares slipped as much as 2.5% on Monday.

“We see less positive surprises ahead for JPMorgan following a strong run over the last two years,” Graseck wrote in a note, adding that there is more room for positive net interest margin surprises elsewhere in the banking sector.

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