JPMorgan likely to raise dividend in early 2010: KBW
Nov 19 (Reuters) - Keefe, Bruyette and Woods said JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) is likely to increase its dividend in early 2010, given the bank's capital position and recent repayment of bailout funds.
The brokerage also said with the widening of credit spreads and growth in deposits, net interest margin at the second largest U.S. bank by assets would remain elevated over the near term.
KBW maintained its "outperform" rating on JPMorgan, citing the company's strong balance sheet and increased earnings visibility. The brokerage has a price target of $54 on the bank's stock.
Earlier on Thursday, JPMorgan agreed to buy the half of UK stockbroker Cazenove it does not already own in a $3.4 billion deal. [nLJ417095]
Shares of JPMorgan were down almost 1 percent at $43 in trading before the bell on Thursday. They closed at $43.38 Wednesday on the New York Stock Exchange.
(Reporting by Brenton Cordeiro in Bangalore; Editing by Pradeep Kurup)
((brenton.cordeiro@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: brenton.cordeiro.thomsonreuters.com@reuters.net)) Keywords: JPMORGAN/RESEARCH KBW
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