CLSA analyst Mike Mayo is eyeing JPMorgan Chase, despite the bank’s earnings miss on Tuesday. In a note he said, “JPMorgan remains the Lebron James of banking.”
“Lebron James is good at both offense and defense, and for JPMorgan this quarter they didn’t play offense too well, but their defense is very strong,” he told CNBC’s “Halftime Report” on Wednesday.
Mayo said that despite the miss, the bank is showing higher capital, better credit and a cleaner balance sheet. He added that the bank is gaining market share is investment banking and deposits. “So the environment was tough, it hit them disproportionately this quarter, but we think this is a one-off,” he said.
On the larger theme for banks this quarter, Mayo said it is hard to draw conclusions about the sector since the third quarter is seasonally weak.
However, if interest rates stay lower for longer, he said, that means sustained headwinds for banks. “JPMorgan has a plan B. They’re restructuring, they’re retooling, they’re a self-help story and that’s in contrast to some other banks.”