JPMorgan's Diversified Business Model, Investments Led to Strong Balance Sheet, RBC Says

JPMorgan Chase's (JPM) diversified business model and billions of dollars in investments made over the last decade have resulted in a strong balance sheet and a highly profitable diversified banking model, RBC Capital Markets said Tuesday in a note. RBC expects JPMorgan to continue rewarding long-term shareholders with above-average profitability and returns under the leadership of CEO Jamie Dimon, according to the note. The bank raised its full-year 2026 net interest income outlook to about $105.5 billion from $105 billion and increased its adjusted expense forecast to nearly $107.5 billion from $105 billion, reflecting higher volume and revenue-related costs due to business outperformance, the note added. The brokerage revised its 2026 and 2027 earnings per share estimates to $22.96 and $24.00 from $22.00 and $23.75, respectively, reflecting its updated outlook, including higher total revenue partly offset by higher expenses. RBC kept an outperform rating on JPMorgan and raised its price target to $370 from $330. Price: $347.99, Change: $+5.10, Percent Change: +1.49%