Wednesday, January 19, 2011

JPMorgan (NYSE:JPM) Share Repurchase, Dividend Expected

Results for JPMorgan (NYSE:JPM) are expected to be largely inline or exceeding expectations, according to Barclays, who also believes there is a strong probability of a share repurchase and a dividend increase sometime in the first half.

Barclays says, "Bottom-line, we expect results to be viewed as in-line to better than expected, with the capital redeployment thesis intact. It appeared to address mortgage repurchase concerns, while at 7% Basel III common currently (and our expectations that figure should continue to build), we continue to look for a 1H11 dividend hike, as well as possible increased share repurchase activity.

"We are maintaining our 2011 estimate of $4.95 (Durbin costs it $0.09 as is). Our inaugural 2012 estimate is $5.60 ($0.19). Near-term, we expect modest balance sheet contraction and a lower NIM offset by seasonally higher trading results in 1Q, improved IB fees, lower litigation costs and further reserve release."

Barclays reiterates an "Overweight" rating on JPMorgan (JPM), which closed Tuesday at $44.75, down $0.16, or 0.36 percent. Barclays has a price target of $60 on JPMorgan.

No comments: