JP Morgan Chase (NYSE: JPM) was upgraded by Zacks Investment Research to a “Neutral” rating, up from and “Underperform” rating, citing the market’s recovery and valued growth indicators.
Zacks said that JP Morgan Chase will benefit from its core businesses and its recent large scale acquisitions. The analyst noted that each of JP Morgan Chase’s core businesses rank in the top three players of their respective industries. Zacks praised JP Morgan Chase for pursuing acquisition to build scale and volume.
In May 2008, JP Morgan Chase acquired Bear Stearns. The company acquired Washington Mutual in September 2008. In February 2010, the company announced that it would acquire RBS-Sempra Commodities for $1.7 billion. The deal is expected to close during Q2 2010.
JP Morgan’s fourth quarter earnings of $0.74 per share were above the consensus estimate published by Zacks of 61 cents per share because of better-than-expected results from its investment banking unit. Although, high consumer credit losses tempered its success with investment banking. All segments at JP Morgan Chase except consumer lending and card services delivered strong results during the quarter.
