JPMorgan Could Become the First Bank to Join the "$1 Trillion Club": BofA Recommends Buying
"The bank could become the only non-tech company with a market capitalization of $1 trillion that remains relatively undervalued from a fundamental perspective," says an analyst at Bank of America, a competitor of JPMorgan.
On average, Wall Street does not expect JPMorgan’s market capitalization to exceed $1 trillion in the coming year / Photo: Tada Images / Shutterstock.com
JPMorgan Chase & Co. could become the first bank with a market capitalization exceeding $1 trillion, according to Bloomberg. But even in that case, the financial giant will be trading at such an attractive discount that its shares will be hard to ignore, according to an analyst at JPMorgan’s biggest competitor, Bank of America.
According to Yahoo Finance, JPMorgan's market capitalization currently stands at $942.88 billion, with the stock trading at $354.7 per share. During trading on September 9, the stock rose 0.4%.
Details
According to BofA Securities analyst Ebrahim Punavala, JPMorgan will likely be able to “deliver higher earnings growth” by leveraging its scale, as well as opportunities in artificial intelligence, digital assets, and private wealth management, Bloomberg reports. He cited Jamie Dimon as another of the bank’s strengths, describing him as “one of the best CEOs in corporate America.”
“Investors are underestimating the potential for JPMorgan’s stock to trade at an even wider premium relative to its competitors as the company nears entry into the exclusive club of companies with a $1 trillion market capitalization,” Punawala wrote in a note to investors on Wednesday. He estimates that the bank, under Dimon’s leadership, is likely to attract new investors, which will create a “premium for uniqueness” for the stock.
Punawala noted that all 11 companies in the S&P 500 index whose market capitalization currently exceeds $1 trillion—including Nvidia, Alphabet, and Apple, are trading at a P/E ratio—which measures the relationship between a company’s share price and its earnings per share—that is significantly higher than JPMorgan’s. According to the analyst, JPMorgan could be the only non-tech company on this list with a market capitalization of $1 trillion that remains relatively inexpensive—its P/E ratio is around 15. This makes JPMorgan’s stock “one of the most attractive opportunities in terms of risk-reward” among all the companies covered by BofA, Punawala notes.
What do people on Wall Street think about this?
On Wednesday, JPMorgan shares rose 0.4%. Since the start of 2026, the stock has gained 10% after rising more than 25% each year for the past three years, according to Bloomberg. Many investors have been waiting for some time for a stronger rally in U.S. bank stocks, the agency writes: conditions for further growth appear favorable thanks to a fairly stable economy and rapid growth in AI-related lending.
There is no consensus on Wall Street regarding how much further JPMorgan’s stock could rise. No analyst recommends selling the bank’s stock; 18 advise buying it, while another 15 assign ratings equivalent to “hold,” according to data compiled by Bloomberg. Although analysts’ average price target of $375 is 6% higher than the closing price on September 9, it does not imply that the stock will reach the level needed to achieve a market capitalization of $1 trillion within the next 12 months, the agency notes.
Bank of America, with a market capitalization of less than $450 billion, is the second-largest bank in the United States.
This article was AI-translated and verified by a human editor
