JPMorgan at $1 Trillion Will Still Be Cheap, Rival Analyst Says

JPMorgan Chase & Co. is poised to become the first bank to join the ranks of companies topping $1 trillion in market value. That would leave the financial behemoth trading at a discount too attractive to pass up, according to an analyst at its biggest rival, Bank of America Corp.

“Investors are underestimating the potential for JPMorgan shares to widen their relative valuation premium to peers as the stock closes in on joining the exclusive $1 trillion market-cap club,” BofA Securities analyst Ebrahim Poonawala wrote in a note Wednesday, adding that the Jamie Dimon-led bank would likely attract new investors, triggering a “scarcity premium.”

Poonawala noted that the 11 S&P 500 Index members which currently surpass the $1 trillion-mark — including Nvidia Corp., Google parent Alphabet Inc. and Apple Inc. — all trade at a price-to-earnings ratio that far exceeds JPMorgan’s. The lender stands to benefit “as the only trillion-dollar company outside technology trading at a mid-teens earnings multiple.”

He views the bank as “one of the most attractive risk/reward opportunities across our coverage.” The question, he said, would be whether investors will continue to value the company at a “material discount to the broader market.”

Wall Street is divided on how much further JPMorgan will climb. While no analysts rate it a sell, 18 analysts recommend buying the stock and another 15 rate it the equivalent of a hold, according to Bloomberg-compiled data. Meanwhile, the average price target of $375 implies the stock will fall shy of reaching the $1 trillion milestone over the next 12 months. Bank of America, with a market cap of less than $450 billion, is the next largest US bank.

To Poonawala, JPMorgan is likely to “deliver superior earnings growth” as it takes advantage of its scale, along with its leverage to artificial intelligence, digital assets and wealth management. Also in its favor, Dimon is “one of the best CEOs in corporate America,” he said.

JPMorgan shares advanced 0.4% in Wednesday trading. The stock has climbed 10% so far in 2026 after gaining more than 25% in each of the prior three years.

Many investors have been waiting for a bigger rally in US bank stocks with conditions in place to fuel further gains, including a fairly healthy economy and booming AI-related lending. Earlier, Jackson Square Capital partner Andrew Graham said JPMorgan was particularly geared to withstand an economic shock.

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