Top Wells Fargo Analyst Mike Mayo has given JPMorgan Chase stock a glowing endorsement, likening it to Nvidia, the tech giant. Mayo calls JPM the “Nvidia of banking” due to its lead in artificial intelligence (AI) and other emerging technologies.
Mayo, a top-rated analyst, reiterated his Buy-equivalent overweight rating on JPM stock with a price target of $300, representing 26% upside from current levels. He’s more confident in his financial forecast for JPMorgan than most banks, citing growth in employee productivity, increased market share, and potential margin gains driven by tech investments.
JPMorgan’s technology budget has increased to $18 billion this year, outpacing the industry average. This spending has aided branch locations through AI, which has improved demographics, customer synergies, and traffic. The bank has also added over 7,000 new employees, mostly in tech roles.
Despite a consensus Moderate Buy rating among Wall Street analysts, with an average price target of $274.40 implying 14% upside, JPM stock has only risen 0.64% this year.
Source: https://markets.businessinsider.com/news/stocks/why-this-top-analyst-calls-jpmorgan-chase-stock-jpm-the-nvidia-of-banking-1034499901