JP Morgan Stock To Remain 'Range Bound' Until Clarity On Credit Card APR: Analyst

Core Viewpoint - JP Morgan Chase & Co. reported a decline in net income for the fourth quarter, but adjusted earnings per share exceeded analyst expectations, indicating resilience in its financial performance despite challenges [2][3]. Earnings Snapshot - The company reported a net income of $13.0 billion, or $4.63 per share, which is a 7% decrease year over year [2]. - Adjusted earnings per share were $5.23, surpassing the analyst estimate of $4.92 [2]. - A $2.2 billion credit reserve was established for the forward purchase commitment of the Apple credit card portfolio, impacting earnings [2]. - For fiscal 2026, JP Morgan expects net interest income of approximately $103 billion and net interest income excluding Markets of about $95 billion [2]. Analyst View - Goldman Sachs analyst Richard Ramsden maintained a Buy rating with a price forecast of $386, citing strong loan growth trends of 4% sequentially that supported the positive net interest income outlook [3]. - Following the results, Ramsden raised the 2026 and 2027 Performance Profitability Net Revenue (PPNR) estimates by 2% and 3%, respectively, and increased EPS by 3% due to higher net interest income and fee income [4]. - The analyst introduced EPS projections for 2028 and expects the bank to maintain Return on Average Tangible Common Equity (ROTCE) above the ~17% medium-term target, with estimates around 20% and 21% for 2026 and 2027, respectively [4]. Market Reaction - Despite the generally positive results, shares of JP Morgan Chase were down 1.00% at $307.80, with expectations that the stock may remain range-bound until there is more clarity on credit card APR limits and the Card Competition Act [5].