JP Morgan Chase "buy"

Monday, April 10, 2006 7:14:54 AM ET
Punk Ziegel & Co.

NEW YORK, April 10 (newratings.com) - Analyst Richard X Bove of Punk Ziegel & Co maintains his "buy" rating on JP Morgan Chase (JPM.NYS). The target price is set to $50.

In a research note published this morning, the analyst mentions that the company has announced the acquisition of Bank of New York’s consumer, small business and middle market banking segments for $2.30 billion. The payment is to be made by JP Morgan swapping its corporate trust unit and paying $150 million in cash, the analyst says. After the deal, JP Morgan would possess 31.8% share of the New York State market, 4.5% of the Connecticut market and 3.5% share of the New Jersey deposit market, Punk Ziegel & Co adds. The analyst expects the company to be able to achieve significant savings and substantially increase revenues through the acquisition.