Credit Suisse Raises Estimates On JPMorgan After $19.4 Billion Buyback

Courtesy of Benzinga.

The $19.4 billion in buybacks announced by JPMorgan Chase & Co. (NYSE: JPM) are 15 percent above Credit Suisse’s forecast, leading the firm to raise its estimates for the largest of banks.

Credit Suisse raised its 2018 EPS estimate for JPMorgan from $7.60 to $7.65 and its 2019 EPS estimate from $8.35 to $8.40. The firm’s 2017 EPS estimate of $6.75 remains unchanged.

The firm raised its target price for JPMorgan’s stock from $99 to $102.

“Risks to the achievement of our estimates and target price are largely tied to the macro and regulatory environment and with that, the achievability of forecast revenue growth and capital returns,” analyst Susan Roth Katzke said in a note.

After the Federal Reserve’s OK’ed JPMorgan’s capital plan in the 2017 Comprehensive Capital Analysis and Review — the Fed’s annual stress test — the bank announced Wednesday that it would make buybacks of up to $19.4 billion between July 1 of this year and June 30, 2018. JPMorgan also announced an increase in its quarterly dividend to $0.56 beginning in the third quarter of 2017.

“Given the financial strength of the company and the significant capital and liquidity advancements we have made over the last several years, we are pleased to further increase capital returns to our shareholders while continuing to invest in our businesses for long-term profitability,” CEO Jamie Dimon said in a statement.

Related Links:

JPMorgan Chase’s $150 Million Detroit Investment: Repair, Revitalize, Reinvest

Jim Cramer Shares His Thoughts On JPMorgan And IBM

Posted-In: Credit Suisse Susan Roth KatzkeAnalyst Color Price Target Federal Reserve Analyst Ratings Best of Benzinga