Barclays Says JPMorgan (NYSE:JPM) Should Beat EPS Consensus

Barclays believes JPMorgan (NYSE:JPM) will beat Street consensus for EPS in the fourth quarter, citing lowering mortgage repurchasing costs and revenue generated from investment banking fees.

Barclays said, "While JPM faces several near-term headwinds (regulatory reform changes, mortgage repurchase costs, and balance sheet run-off), we look for sound 4Q10 results benefitting from solid investment banking fees, lower mortgage repurchase costs, and ongoing reserve release. We look for asset quality to continue to improve and for profitability and market share gains to continue across its business units.

"We expect JPM to report 4Q10 EPS of $1.06, ahead of the $0.99 consensus. We believe investment banking fees could exceed forecasts driven by strength in equity underwriting, advisory and syndicated lending, though fixed income trading results could decline."

Barclays maintains an "Overweight" rating on JPMorgan, which closed Tuesday at $43.60, gaining $0.20, or 0.46 percent. Barclays has a price target of $60 on them.