Jefferies analysts have upgraded their rating on JPMorgan Chase & Co. (JPM) to buy from hold, while also raising their price target by 11% to $165 per share. This upgrade comes as a result of JPM’s stable earnings outlook, its best-in-class return on equity profile, conservative reserving history, and better revenue diversity.

Positive Outlook for JPMorgan Chase

Analyst Ken Usdin stated in a research note that although JPMorgan has been performing well recently, the stock is being upgraded to buy based on its strong fundamentals. With an anticipation of the upcoming second-quarter earnings report on Friday, Jefferies remains confident in their upgraded rating.

Trust Banks and Broker Dealers Preferred

While Jefferies continues to have a positive outlook on JPMorgan Chase, the firm still has a preference for trust banks such as Bank of New York Mellon (BK) and State Street Corp. (STT), as well as broker dealers like Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS). Jefferies favors these institutions over most regional banks due to their smaller net interest income burdens, more stable pre-provision net revenue, and minimal credit risk.

Downgrades for Truist Financial Corp., Zions Bancorp, and Hancock Whitney Corp.

In contrast, Jefferies has downgraded Truist Financial Corp. (TFC), Zions Bancorp (ZION), and Hancock Whitney Corp. (HWC) to hold from buy. This decision was made due to downward revisions to net interest income and a perceived lack of differentiating catalysts for these companies.

Stock Performance

In premarket trading, JPMorgan Chase stock is up by 1.1%, while Truist is down 0.8%, Zions is declining by 2.2%, and Hancock Whitney remains unchanged.

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