Analyst Chris Kotowski of Oppenheimer & Co. Inc. is pointing investors who want a combination of quality and value toward JPMorgan Chase & Co. (JPM), a company that has a rich mix of business while trading at only 1.4 times tangible book.
“[JPMorgan] is arguably the strongest big bank in the world. It has performed well through extreme adversity, and trading at one point for tangible book and by 10 times earnings, it’s just way too cheap,” Kotowski said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Kotowski believes that investing in JPMorgan is a good way to gain exposure to the banking sector, as it has a more robust mix of business than most regional banks, yet is trading at less times tangible book.
“On average the regional banks are probably trading between 1.8 and two times tangible book, and JPMorgan is only 1.4. And if you just do a regression line between return on tangible equity and price to book, if JPMorgan were in its rightful spot in terms of valuation on that regression line it would be closer to an $80 stock,” Kotowski said.
JPMorgan Chase & Co. (NYSE:JPM) Attractive from Both a Value and Momentum Perspective
April 21, 2017
JPMorgan Chase & Co. (JPM) Trades Inexpensively, Returns Capital, Grows Regional Units
April 29, 2013
JPMorgan Chase & Co. (JPM) Maintains Earnings Power Despite Legislative Risk
May 02, 2013
JPMorgan Chase & Co. (NYSE:JPM) On Track For Capital Increases to Shareholders
January 08, 2016
Gordon Smith, JP Morgan Chase & Co. (JPM) Consumer/Community CEO, Speaks at BancAnalysts Assn. of Boston
November 10, 2014
