Here’s How Analysts Are Rating Big Banks

With fourth-quarter earnings out and the majority of financial crisis-era lawsuits in the past, analysts have begun to reassess several of the United States’ largest financial institutions.

JPMorgan Chase (NYSE:JPM): Current Price $47.01

In some respects JPMorgan Chase had a rough 2012. Since August the bank’s stock has trailed behind global banks by 30 percent, and even more concerning it chalked up a $6.2 billion trading loss earlier in the year and was fined $4.3 billion by federal and state prosecutors for mortgage-related abuses. However, despite these setbacks, JPMorgan was able to post record profits for 2012, generating $21.3 billion in net income last year.

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These earnings drew the notice of analysts at Deutsche Bank, as did the bank’s diminishing mortgage business. The team of analysts led by Matthew O’Connor wrote in a research note seen by Bloomberg that JPMorgan’s annual operating expenses could drop by as much as $5 billion in the next few years, partly because its mortgage servicing costs will decrease.

O’Connor upgraded the shares of the financial institution to buy from hold and increased the 12-month price target to $53 from $48. “We think JPM is the best-positioned market-sensitive bank for a pickup in consumer loan growth,” he wrote.