Bank of America raises JPMorgan price target to $420 after strong second-quarter earnings

According to CNBC, Bank of America reiterated its buy rating on JPMorgan Chase and raised its price target to $420 from $408, implying 21% upside from Wednesday's close. Analyst Ebrahim Poonawala said second-quarter results reinforced the bank's positive view on JPMorgan, citing revenue growth tied to capital markets and AI capex, opportunities linked to AI and digital asset adoption, operating leverage from the firm’s scale, and capital flexibility. JPMorgan reported adjusted second-quarter earnings of $6.14 per share on revenue of $52.42 billion, topping Wall Street expectations of $5.85 per share and $50.19 billion, according to LSEG data. Poonawala also said the bank indicated on its earnings call that it is well positioned to keep growing because of the resiliency of the Main Street economy despite multiple macro shocks. Bank of America said consumer and business willingness to absorb higher-for-longer interest rates could support more upside in JPMorgan shares. The call aligns with broader Wall Street sentiment, with 14 of 26 analysts covering JPMorgan rating the stock buy or strong buy, LSEG data shows. Shares are up nearly 8% year to date.