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Tuesday, January 06, 2009 2:09:41 AM
DEUTSCHE BANK CUTS ESTIMATES, TARGET FOR JP MORGAN
Deutsche Bank analyst Mike Mayo says that worsening economic trends should put additional pressure on JPMorgan Chase & Co.'s (JPM) loan portfolios (especially cards, home equity, residential, and commercial mortgage) as well as banking industry in general.
Mayo expects commercial bank loan losses to rise from 1.5% to 3% by the end of 2010, on increased percentage of loans with higher losses, greater consumer leverage and sooner problem recognition by banks.
He cuts 2009 EPS estimate by $0.65 to $2.05, and 2010 by $0.35 to $2.20, reflecting higher loss rates and lower revenue. As a result, he cuts $37 target to $34. He rates JPM hold.
http://www.businessweek.com/investor/content/jan2009/pi2009015_500851.htm?chan=investing_investing+index+page_stocks+%2Bamp%3B+markets
Deutsche Bank analyst Mike Mayo says that worsening economic trends should put additional pressure on JPMorgan Chase & Co.'s (JPM) loan portfolios (especially cards, home equity, residential, and commercial mortgage) as well as banking industry in general.
Mayo expects commercial bank loan losses to rise from 1.5% to 3% by the end of 2010, on increased percentage of loans with higher losses, greater consumer leverage and sooner problem recognition by banks.
He cuts 2009 EPS estimate by $0.65 to $2.05, and 2010 by $0.35 to $2.20, reflecting higher loss rates and lower revenue. As a result, he cuts $37 target to $34. He rates JPM hold.
http://www.businessweek.com/investor/content/jan2009/pi2009015_500851.htm?chan=investing_investing+index+page_stocks+%2Bamp%3B+markets
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