REFILE-UPDATE 2-Analysts cut JPMorgan 2008 EPS view
(Fixes typo in headline) (Recasts; adds analysts' comments and background)
April 17 (Reuters) - Analysts Meredith Whitney of Oppenheimer & Co and Richard Bove of Punk Ziegel cut their 2008 and 2009 earnings for JPMorgan Chase & Co (JPM.N: Cotización), with Bove advising investors to be cautious as the bank was having a lot of difficulty dealing with the economic downturn.
However, Bove said the third-largest U.S. bank is a "great company" with a very attractive long-term future. He rates the stock "market perform" with a price target of $44.
Oppenheimer's Meredith Whitney maintained her "perform" rating on the stock.
On Wednesday, JPMorgan had reported a 50 percent drop in quarterly profit. Still, its results calmed investors as it was able to skirt the massive losses that have crippled many rivals.
"The actual operating numbers were very discouraging," Bove wrote in his note to clients.
The company's investment bank posted a loss for the quarter and principle transactions were negative, he said.
The worst deterioration was in subprime mortgages, Bove noted, even as he added that "there is deterioration everywhere."
Investment banking operations at JPMorgan suffered an $87 million loss, compared with a year-earlier $1.54 billion profit, hurt by the write-downs. Continuación...