Road to $2 trillion market cap for JPMorgan could take 7-8 years, Mike Mayo says
JPM•Mayo sees a longer path to $2 trillion
The road for JPMorgan Chase, the largest U.S. bank, to surpass the $2 trillion market-cap milestone could take roughly seven to eight years, veteran Wall Street analyst Mike Mayo says.
Achieving that milestone requires more profit growth than stock re-rating, Wells Fargo's Mayo says, adding that market value gains over the past six years were driven two-thirds by EPS growth.
Wells Fargo raises price target and estimates
Wells Fargo lifts JPM PT to $390 from $375 and boosts profit estimates for 2027 and 2028, assuming higher returns from recent investments.
JPM commands a $965 billion market cap as of last close; stock has jumped 12.7% YTD.
International expansion and earnings growth are key
Key big opportunities include JPM's ability to export its capabilities internationally, Mayo says.
Mayo's comments come as JPM is within striking distance of potentially becoming the first $1 trillion market-cap bank.
"Instead of overly celebrating the $1T market cap milestone, we would expect JPM to focus on how it can double earnings again in the future," Mayo says.
