On Monday, analysts discussed stocks from a major banking institution and a consulting firm. Morgan Stanley downgraded JPMorgan Chase from overweight to equal weight, while TD Cowen elevated its rating for Accenture from hold to buy. Below are the latest calls and insights. All times are in Eastern Time (ET).
6 a.m.: Piper Sandler Upgrades Amerant Bancorp
Piper Sandler upgraded Amerant Bancorp, suggesting a potential 29% rally in its shares following a recent capital raise. Amerant Bancorp, based in Florida, priced a gross capital raise of $165 million at $19 per share, issuing approximately 8.7 million shares. Analyst Stephen Scouten upgraded Amerant Bancorp to overweight from neutral, increasing the price target by 50 cents to $25.60. This indicates that the stock, which has declined 16.5% year to date, could increase by 29.2% in the next year. Scouten highlighted that the upgrade is based on favorable risk/reward dynamics post-raise and that Amerant now possesses sufficient capital to expand rapidly within its Florida markets, having completed the final stage of its multi-year transformation.
5:50 a.m.: Morgan Stanley Downgrades JPMorgan Chase
Morgan Stanley downgraded JPMorgan Chase to equal weight, citing the bank’s unfavorable position for upcoming rate cuts through the end of 2025. Analyst Betsy Graseck noted limited potential for net interest margin (NIM) expansion at JPMorgan Chase in the near term. With a price target of $224, Graseck predicts a 6.4% potential upside for the stock, which has seen a 23.8% increase this year. Graseck pointed out that JPMorgan management has consistently emphasized their reliance on net interest income, suggesting limited NIM surprises relative to other large-cap banks. She also projects a -3% operating leverage for the next year, the most negative among the large-cap banks covered by Morgan Stanley, and mentioned that midcap banks might benefit more from rapid interest rate cuts.
5:50 a.m.: TD Cowen Upgrades Accenture
TD Cowen recommended buying shares of Accenture, citing the company’s recovery momentum. Analyst Bryan Bergin upgraded Accenture to buy from hold and raised the price target to $400 from $321, implying a 14.4% potential upside from the previous Friday’s close. Bergin highlighted that the company has shown demand stabilization and its initial FY25 guidance is positioned for positive revisions. He also mentioned traction in generative AI and potential demand tailwinds related to Federal Reserve rate cuts, which should positively impact IT budgets and tech multiples in 2025. The upgrade also reflects overall improvements in the services sector, with Accenture serving as an optimal investment for sector exposure. While Accenture’s shares have remained flat year to date, they have increased by over 13% in the past three months.
These updates reflect the analysts’ latest evaluations and forecasts for the respective companies.
