JPMorgan Chase & Co. JPM, +4.58% was upgraded to hold from sell by Berenberg, analyst Peter Richardson, who said downside risks to shares are more limited now, following disappointing results last week. “JPMorgan is operating in a difficult environment. Global uncertainty has rapidly reduced investment banking activity, and the bank’s current sources of strength, in consumer and commercial banking, are also being overshadowed by US recession concerns. However, with JPMorgan’s shares now trading at a c20% discount to their long-run average and given the temporary nature of these headwinds, we believe that downside risks to the bank’s share price are now more limited,” said Richardson, in a note to clients on Monday. JPMorgan shares rebounded 4.5% on Friday, a day after a 3.4% slump as the bank missed profit targets for the second quarter and temporarily suspended buybacks to brace its balance sheet for an expected economic downturn.
