CFRA: Capital markets business brings further growth, Morgan Stanley (JPM.US) rating upgraded to "buy"

CFRA analyst Kenneth Leon on Tuesday upgraded JPMorgan Chase's stock rating from "hold" to "buy," citing the bank's potential to "accelerate profit growth through its business positioning in the capital markets." Leon wrote in a report that this includes trading, stock and bond underwriting, as well as increased fees from merger advisory and growth in fees from asset and wealth management. Leon added, "Given expectations for lower interest rates and U.S. economic growth near 2.0%, we believe net interest income (NII) will offset the decline in interest rates through increased volumes of consumer and commercial loans." JPMorgan Chase's earnings and revenue in the second quarter exceeded analysts' average expectations, with strong year-over-year growth particularly in the market business, including stock trading, as well as in the asset and wealth management business.