According to a report by Bloomberg earlier this week, citing a source with knowledge of the matter, J.P. Morgan (JPM) is looking for 100% ownership of its futures joint venture in China.
J.P. Morgan Chase shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. The stock went up 0.56% ($0.77) to $139.40, after touching an intraday low at $138.31, or a price level not seen since December 26th ($137.78).
Shares of J.P. Morgan Chase & Co surged 42.80% in 2019 compared with a 28.88% gain for the benchmark index, S&P 500 (SPX).
In 2018, J.P. Morgan’s stock went down 8.72%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
A filing by J.P. Morgan Futures Co with the China Securities Regulatory Commission on December 25th revealed that the company had applied to make a change of over 5% in its shareholding structure. However, no additional details were disclosed.
As China is gradually opening up its financial sector to foreign players, as of January 1st 2020, limits on foreign ownerships of futures companies will be removed. The futures industry in the country is at present dominated by domestic players.
In case the Wall Street bank succeeds in raising its stake, it would become the first foreign entity to have majority ownership of its futures business in China.
Analyst stock price forecast and recommendation
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding J.P. Morgan Chase & Co’s stock price, have a median target of $134.50, with a high estimate of $150.00 and a low estimate of $85.00. The median estimate represents a 3.52% downside compared to the closing price of $139.40 on December 31st.
The same media also reported that at least 11 out of 25 surveyed investment analysts had rated J.P. Morgan Chase & Co’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
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