Bullish Spotlight on JPM and MS Before Q2 Earnings: Why Analysts Are Lifting Price Targets
Wall Street warms up to big banks as earnings approach, and analysts are betting on upside
Wall Street buzz is building as analysts ramp up expectations ahead of major bank earnings next week. JPMorgan Chase & Co. (ticker JPM, traded on the NYSE, financial services sector) and Morgan Stanley (ticker MS, also on the NYSE, financial services sector) are receiving widespread upgrades, marking a wave of optimism for the banking industry.
Christopher McGratty at Keefe Bruyette & Woods elevated both JPM and MS from "market perform" to "outperform", hiking the price target on JPMorgan from $253 to $327 and on Morgan Stanley from $127 to $160—a projected upside of roughly 16% and 14% respectively. Other firms including Deutsche Bank, Wells Fargo, Seaport Global, Jefferies, RBC Capital Markets and Morningstar also raised their targets. Morningstar’s Suryansh Sharma cited JPMorgan’s unrivaled scale, deep geographic reach and strong technological investments as key advantages.
Truist lifted its price target on JPMorgan to $290 while maintaining a “hold” rating, though analysts remain confident in trading and investment management momentum. Meanwhile, Deutsche Bank and RBC also praised Morgan Stanley’s strength in equity trading and wealth management, which helped it beat Q1 estimates and deliver strong profit growth despite lingering tariff uncertainty.
Underneath these upgrades is a broader market tailwind. Banks globally are projected to benefit from a nearly 10% rise in trading revenue this quarter, fueled by tariff-driven volatility and elevated market activity. Investor confidence in U.S. financials is further supported by stress‑test success, favorable regulatory shifts, and expectations for imminent interest rate cuts.
Despite widespread enthusiasm, caution is warranted. HSBC downgraded JPMorgan to “reduce,” warning that stretched valuations pose risk amid rising investor exuberance. Still, the KBW Nasdaq Bank Index recently posted a ten-day winning streak with JPMorgan, Morgan Stanley, Capital One and BNY hitting record highs, reflecting sustained bullish energy.
Financial forecasts suggest JPMorgan will report modest earnings growth of around 1.9% with revenue dipping 14% to $43.8 billion, while Morgan Stanley is projected to deliver about 8.5% EPS growth supported by 6.6% revenue gains. That projection aligns with earlier Q1 results where JPMorgan posted net income of $14.6 billion, EPS of $5.07 on $46 billion revenue, and Morgan Stanley delivered $4.3 billion in net income with strong equity trading and wealth management growth.
At play is the structural advantage of scale. Analysts highlight how these giants are leveraging vast capital, global presence, diversified lines—like trading, asset management, investment banking—and strong capital positions to outperform peers. That long‑term edge is at the heart of bullish sentiment heading into Q2 earnings.
With elevated targets and positive thematic momentum, banks like JPMorgan (ticker JPM) and Morgan Stanley (ticker MS) are anchored in investor conversations across finance platforms. Whether Q2 beats expectations or markets soften, one thing is clear: for many analysts, both tickers offer compelling upside in a landscape where volatility continues to drive trading profits and strategic positioning matters.