JPMorgan Chase & Co.

Analyst thesis

Our recommendation is based on:

• JPM operates across Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking and Asset & Wealth Management, providing diversified revenue streams across US retail, wholesale and global markets with selective international exposure. The portfolio generates a mix of recurring and market-sensitive income, captures higher-margin capital markets and advisory opportunities, and provides exposure to both secured and unsecured lending, supporting earnings durability across varying economic and rate environments.

• Under Jamie Dimon, JPM leverages digital banking and AI, supported by a large mobile user base and automation, to drive client acquisition, engagement and operating leverage. Rising digital penetration supports a durable cost and risk advantage over peers.

• JPMorgan Chase & Co. delivers sector-leading profitability, consistently generating double-digit ROE/ROTCE alongside robust capital and liquidity. Strong capital generation supports sustained investment, dividends and buybacks, underpinned by scale and funding advantages.

• Solid fundamentals but valuation constrains upside: Despite strong leverage to the United States, the stock trades at a premium to peers, with its quality largely priced in. As sector valuations appear modestly stretched and earnings tailwinds normalise, risk-reward profile looks balanced, supporting a hold stance.