BofA says trillion-dollar status could broaden JPMorgan's investor base
JPMorgan Chase, the largest U.S. lender, joining the $1 trillion market-cap club could open the door for the stock to begin attracting a different investor audience, BofA analyst Ebrahim Poonawala said.
Poonawala said that while investors remain focused on near-term expense growth, the more important question is whether the Street will continue valuing a trillion-dollar "best-in-class" franchise at a material discount to the broader market.
"Rather than becoming harder to own, we believe JPM could benefit from a scarcity premium as the only trillion-dollar company outside technology trading at a mid-teens earnings multiple," Poonawala said.
JPM is within striking distance of potentially becoming the first $1 trillion market-cap bank.
"JPM is well positioned to deliver superior earnings growth on the back of an unmatched scale of franchise investments, leverage to secular themes including AI, digital assets and wealth management and leadership from arguably one of the best CEOs in corporate America," Poonawala said.
JPM currently has a market cap of $940 billion, LSEG data showed.
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