2023-10-18 02:08:27
JP Morgan far exceeded expectations in its 3rd quarter. (Photo: 123RF)
What to do with the securities of JP Morgan Chase, Tourmaline Oil and Canadian Tire? Here are some analyst recommendations likely to move prices soon. Note: the author may have an opinion completely different from that expressed.
JP Morgan Chase (JPM, US$147.07): it is doing well once again despite difficult conditions
The largest US bank far exceeded expectations in its 3rd quarter, so much so that James Fotheringham, analyst at BMO Capital Markets, raised his forecast for the rest of the year by 5% and raised his target price from 161 US$ to US$171.
However, it maintains its recommendation of “performance equal to the market”, perhaps echoing management’s comments for whom macroeconomic risks remain numerous, mainly in the areas of inflation, government debt, quantitative tightening, as well as uncertainties on the geopolitical scene. And that’s without taking into account the risks relevant to the business, mainly upward pressure on expenses.
The analyst nevertheless sees that through these impressive results JP Morgan once again demonstrates its ability to succeed in the most difficult conditions, and thus highlight its defensive qualities as an investment.
The bank shows earnings per share of US$4.33 for the quarter, but the BMO analyst estimates that taking into account certain valuation losses and legal fees the result is more like US$4.71, exceeding by 22% the analysts’ consensus forecast of US$3.87.
This result is mainly attributable to higher revenues and lower operating expenses than expected, as well as much lower credit costs than anticipated, making it possible to reverse provisions for losses previously made. These factors prompted management to raise its guidance for the full year.
Note that the share price jumped on Friday following the disclosure of the results, but that this increase was ephemeral and that the title quickly returned to its level before the results, despite a clearly marked trading session. on the rise on Monday.
Tourmaline Oil Corp (TOU, $71.66): it announces the acquisition of the private company Bonavista Energy Corporation
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