Banking Bonanza: Could JPMorgan and Morgan Stanley be the New Gold Rush? 💰🏦

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Now, sit ye down and take a ponderin’ glance at this curious affair from that dandy KBW investment bank. This small but dapper establishment has plucked JPMorgan Chase and Morgan Stanley from the wilderness of mediocrity, callin’ them ripe for a good ol’ price hike. Lordy, it seems conditions are favorin’ the big boys on Wall Street! 📈

In a recent chinwag on that bustling bazaar known as CNBC, the estimable Mr. Chris McGratty—the head honcho of bank research—has bestowed his blessings upon JPMorgan and Morgan Stanley, declaring them fit to outperform the rabble, with shiny price targets of $327 for JPM and $160 for MS. Why, that’s a sight to behold! 🏷️

Mr. McGratty, with a glint of mischief in his eye, says that our towering banks are now as snug as a bug in a rug, what with regulations bein’ smoothed over, bless their hearts. It seems like the larger banks have a knack for nudgin’ their way to success, and they’re consistent too—like an old clock that don’t bother to wind! ⏰

“Folks are witnessin’ a re-rating. This here re-rating has been struttin’ around for a spell. Why, deregulation is the bewitchin’ charm slidin’ into our earnings estimates like a cat on a hot tin roof, and suddenly, it seems the upside is our everyday bread and butter.

As the mighty six banks flourish, we’ve received a heap of delightful tidings regarding deregulation, which lies at the heart of our flattering themes, along with their grand scale and unwavering steadiness. By the good heavens! The big banks have all three, as if they stumbled into a fortune teller’s tent and got the winning lottery numbers.”

At the close of Friday’s horse race, our dear JPM is hangin’ about at $286 while MS is feelin’ fancy at $142. Now, if that ain’t somethin’ to haw-haw about! 🐴💵

But wait—there’s more! Citi’s been waved onto Mr. McGratty’s radar like a ship lost at sea. He gabs about how it might be the most principal of stocks among the crew, especially when ye look at its return on tangible common equity (ROTCE). Sounds fancy, don’t it? 🦙

“Think about their guidance—set at a modest 10-11% ROTCE next year. They’ve lowered expectations, bless their hearts. But the catch is, we’re sittin’ at low to mid-9%. There’s a mighty chasm between those figures, and if they can wrangle it right, they might soon wear a crown as the cheapest stock in this rowdy group.”

There’s also a buyback scenario, which is like makin’ lemonade from lemons, when you can repurchase shares at a discount to book value. A mighty fine space to be in when the deregulatin’ winds are blowin’ fair and square for Citi! 🎩

Now, the plight of their ROI (return on equity) has been on the shabby side due to costs catchin’ up quicker than a flea on a dog. But, lo! The investment years are past, and the coffers shall now start fillin’ up nicely. If the macro winds settle down a touch, don’t be surprised if we see a re-ratin’ that’s as splendid as a summer day!”

KBW, the sage from New York, is well renowned for its deep dive into the financial waters and the liberal art of bank stock know-how. So, keep your eyes peeled, as they might just prove to be the wizards of Wall Street! ✨

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2025-07-12 21:12