JPMorgan Chase & Co. shares surge, second quarter revenue to surpass 2019 results

Wall Street stocks rose in Wednesday trading, with the financial and industrial sectors leading the jump in shares. JPMorgan Chase & Co. was among the top performers on Wednesday, with shares going up 4%.

Bank stocks surged significantly as investors were motivated by the hope for recovery that sprung up after businesses started reopening. In addition to the possibility of quicker economic recovery, the hopes that an anti-coronavirus vaccine could be developed sooner than expected increased. This also resulted in gains fot the U.S. stocks in Wednesday trading.

Thanks to the revenue from equities trading and the company’s strong fixed income, JPMorgan Chase & Co. expects that its second-quarter revenue will surpass the results from the previous year. The financial company stated that the revenue of its markets for the second quarter of 2020 is on its way to surpass last year’s growth with more than 50%.

At a virtual conference hosted by the global asset management firm AllianceBernstein, the co-president and COO of JPMorgan Chase & Co., Daniel Pinto, said he expected banking fees during the second quarter to increase by 1%. Meanwhile, mergers and acquisitions might go down 15% to 20%.

While industrials and financials enjoyed a jump in shares on Wednesday, the tech sector suffered a decline. This was a result of the escalating tension between the U.S. and China. Investors are worried after the U.S. stated that Hong Kong will no longer be autonomous if it accepts China’s new security law. This will have a negative impact on various businesses and may bring a drop in the shares of major companies in the U.S. and China.

Analyst stock price forecast and recommendation

According to CNN Money, the 23 analysts offering 12-month price forecasts for JPMorgan Chase & Co. have a median target of $102.00, with a high estimate of $144.00 and a low estimate of $77.00. The median estimate represents a +0.63% increase from the last price of $101.36.

The same media is also offering the recommendations of 26 polled investment analysts. Among all participants in the poll, 12 rated the JPMorgan Chase & Co. stock as “Buy”, while another 12 rated it as “Hold”. The stock was ranked as “Sell” by 1 analyst and 1 gave it an “Outperform” ranking.