JPMorgan's (NYSE:JPM) Diverse Earnings Streams Provides Safety

Contrasting JPMorgan's (NYSE:JPM) earnings streams against their peers, FBR Capital said they see them providing a cushion of safety against "overhangs" their regional competitors don't have.

FBR said, "Overall, JPM's solid quarter enforces our thesis that the larger banks' relatively diverse earnings streams will protect them from various overhangs, compared to regional peers. We are increasing our FY11E operating EPS to $4.30 from $4.25 and GAAP EPS to $4.50 from $4.25 to reflect a slightly higher loan balance and minor securities gains, offset by a lower NIM. We are also introducing our FY12E operating and GAAP EPS of $5.30."

FBR Capital maintains an "Outperform" rating on JPMorgan, which is trading at $44.80, down $0.11, or 0.23 percent. FBR raised their price target on JPMorgan from $45 to $53.