J.P. Morgan downgraded on concerns revenue could miss high expectations
J.P. Morgan Chase & Co. was downgraded to hold from buy by analyst Ken Usdin at Jefferies, who said revenue could miss high expectations following "excellent" results last year. the stock edged up 0.1% in morning trade. Usdin said net interest income could fall shy of forecasts, given potential for fewer interest rate increases by the Federal Reserve this year. He said fees could miss expectations, given lower trading and investment banking, asset management and mortgage fees. After being the best performer of the large-capitalization banks in 2018, Usdin said the stock now trades at a premium valuation around 5-year highs. "We believe the premium gained over the past year is fully justified, but would anticipate additional re-rating above the group as harder from here," Usdin wrote in a note to clients. The stock lost 8.7% in 2018, while the SPDR S&P Bank ETF tumbled 21.1% and the Dow Jones Industrial Average fell 5.6%. Separately, Jefferies also downgraded SunTrust Banks Inc. , U.S. Bancorp and Texas Capital Bancshares Inc. to hold from buy, andupgraded Associated Banc-Corp. to buy from hold. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.