JPMorgan Chase Upgraded to ACCUMULATE on Record Markets Revenue and Fee Income Recovery, US$335 Target Price April 28, 2026

Company Overview

JPMorgan Chase & Co stands as one of America’s largest financial institutions, operating across multiple segments including Corporate & Investment Banking (CIB), Consumer & Community Banking (CCB), and Asset & Wealth Management (AWM). The bank serves millions of consumers and corporate clients globally through its comprehensive suite of banking, investment, and financial services.

Strong Quarterly Performance Drives Upgrade

Phillip Securities Research has upgraded JPMorgan Chase to ACCUMULATE from Neutral, raising the target price to US$335 from US$320 previously. This upgrade follows the bank’s impressive 1Q26 performance, where profit after tax and minority interests (PATMI) surged 13% year-on-year to US$16.5 billion, significantly beating estimates at 27% of the full-year forecast.

The upgrade reflects raised FY26 earnings estimates by 4%, driven by higher principal transaction and investment banking projections. The firm’s valuation methodology assumes 2.66x FY26 price-to-book value and a return on equity estimate of 21.5%.

Key Performance Drivers

The Positives

The Corporate & Investment Bank delivered exceptional results with record market revenue performance. CIB net income jumped 30% year-on-year to US$9.0 billion, whilst revenue climbed 19% to US$23.4 billion. Markets revenue reached a record US$11.6 billion, up 20% year-on-year, with Fixed Income gaining 21% and Equity Markets advancing 17% on robust client activity.

Investment banking fees demonstrated strong recovery, rising 28% year-on-year to US$2.9 billion, driven by higher advisory and equity underwriting fees as merger and acquisition and IPO pipelines reopened. Asset & Wealth Management also performed well, with assets under management increasing 16% year-on-year to US$4.8 trillion and net income up 12%.

Net interest income growth remained sustained through balance sheet expansion, rising 9% year-on-year to US$25.5 billion despite net interest margin declining by 8 basis points. This growth stemmed from higher deposit balances and revolving Card Services balances. Average loans expanded 11% year-on-year to US$1.5 trillion, whilst deposits grew 7% to US$2.6 trillion.

Outlook and Valuation

The bank’s current valuation of 14x price-to-earnings ratio, compared to the 10-year average of 12x, appears justified given JPMorgan’s best-in-class return on tangible common equity of 23%, fortress balance sheet, and superior franchise quality. The 1Q26 earnings beat signals the beginning of a sustainable recovery in fee income, with continued investment banking momentum expected through FY26.

Frequently Asked Questions

Q: What is Phillip Securities Research’s new recommendation and target price for JPMorgan Chase?

A: Phillip Securities Research upgraded JPMorgan Chase to ACCUMULATE from Neutral with a target price of US$335, raised from the previous US$320.

Q: How did JPMorgan’s 1Q26 earnings perform against expectations?

A: JPMorgan’s 1Q26 PATMI rose 13% year-on-year to US$16.5 billion, beating estimates at 27% of the full-year forecast, driven by record markets revenue and strong investment banking fees.

Q: What drove the record performance in the Corporate & Investment Bank?

A: CIB delivered record markets revenue of US$11.6 billion (+20% YoY) with Fixed Income up 21% and Equity Markets up 17%. Investment banking fees rose 28% to US$2.9 billion on higher advisory and equity underwriting fees.

Q: How did net interest income perform despite margin compression?

A: Net interest income rose 9% year-on-year to US$25.5 billion, supported by higher deposit balances and revolving Card Services balances, even though net interest margin declined by 8 basis points.

Q: What are the key growth drivers supporting the upgrade?

A: The upgrade is supported by the reopening M&A and ECM pipeline driving investment banking, asset management tailwinds with AUM up 16% year-on-year, and resilient consumer balances supporting AWM and CCB segments.

Q: How has JPMorgan’s balance sheet expanded?

A: Average loans grew 11% year-on-year to US$1.5 trillion, deposits increased 7% year-on-year to US$2.6 trillion, and Asset & Wealth Management AUM rose 16% to US$4.8 trillion.

Q: What guidance changes did JPMorgan announce?

A: JPMorgan trimmed its FY26 total net interest income guidance to US$103 billion from the previous US$104.5 billion, whilst maintaining expense guidance of US$105 billion.

Q: How does JPMorgan’s current valuation compare to historical averages?

A: JPMorgan trades at 14x price-to-earnings ratio versus the 10-year average of 12x, which is justified by its best-in-class 23% return on tangible common equity, fortress balance sheet, and franchise quality.

JPMorgan Chase Upgraded to ACCUMULATE on Record Markets Revenue and Fee Income Recovery, US$335 Target Price

This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.

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About the author

Glenn Thum

Glenn covers the Banking and Finance sector. He has had 3 years of experience as a Credit Analyst in a Bank, where he prepared credit proposals by conducting consistent critical analysis on the business, market, country and financial information. Glenn graduated with a Bachelor of Business Management from the University of Queensland with a double major in International Business and Human Resources.

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