Piper Sandler lowered its price target on JPMorgan (NYSE: JPM) to $325 from $345, while maintaining an Overweight rating, reflecting adjustments to its earnings forecasts.
The firm reduced its 2026 EPS estimate to $21.65 from $22.58, including a first-quarter estimate cut to $5.67 from $6.01. Its 2027 EPS forecast was also slightly lowered to $23.04 from $23.17.
The revised price target reflects both lower earnings expectations and a more conservative valuation multiple, with the stock now valued at approximately 15x projected 2026 earnings.
Despite these changes, Piper Sandler maintained a positive outlook on JPMorgan, describing it as a highly resilient and conservative investment in an uncertain macroeconomic environment.
The firm noted several model adjustments, including efforts to better capture seasonal fluctuations in credit card performance, which could result in some reserve releases. It also incorporated a slightly higher tax rate assumption.
Additionally, the analyst revised expectations for Markets revenue, suggesting that a larger portion of activity could be reflected in net interest income rather than non-interest revenue. While higher Markets-related NII had already been included in forecasts, this shift could be offset by lower non-interest revenue, implying that prior estimates may have been overly optimistic regarding total Markets revenue.
