JPMorgan Chase may have moved too high too fast this year, according to HSBC. The firm downgraded JPMorgan to reduce from hold. Its new price target of $259 implies more than 11% downside for the stock from Monday's close. \"While we continue to see the JPMorgan maintaining best-in-class profitability and leadership positions across its businesses, we think the bar is high for JPMorgan and we struggle to justify the current valuation,\" analyst Saul Martinez wrote in a note. JPM YTD mountain JPMorgan Chase stock in 2025. \"To us, upside to JPMorgan's share price from current levels over a multi-year period would seem to require a paradigm shift on how banks are valued,\" he added. JPMorgan has advanced more than 21% in 2025, while the S & P 500 has climbed just above 5%. The analyst noted a \"more cautious stance\" on larger banks like JPMorgan and Goldman Sachs over what he said is a still choppy macroeconomic backdrop. Martinez also downgraded Bank of America stock to hold and trimmed his rating on Goldman Sachs to reduce. \"The share prices of the universal banks and brokers we cover have, on average, risen 35% over the past three months,\" Martinez said. \"Ultimately, we think downside risks associated with still-elevated macro uncertainty, potentially slowing economic growth, and more interest rate cuts through 2025 and 2026 are generally not factored into the stock prices of universal banks and brokers.\" Analysts are split on JPMorgan Chase shares. Of the 26 who cover it, 14 rate it a buy or strong buy, according to LSEG. Another 11 have hold ratings on the stock.

HSBC downgrades JPMorgan Chase, adopts 'a more cautious stance' on bank stocks

HSBC has downgraded JPMorgan Chase and Bank of America, citing concerns over valuation and macroeconomic risks. Analyst Saul Martinez argues that JPMorgan's stock is overvalued given current market conditions, while also noting broader caution toward large banks amid economic uncertainty.