JPMorgan Chase's recommended top global investment bank stocks

2026-03-04 15:55:13

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Investing.com - JPMorgan analysts say that Middle East events have a limited direct impact on the profitability of global banks, as although the region is a growth area for most diversified institutions, its contribution to the group’s overall earnings remains small.

The firm notes that global banks maintain wholesale operations in the region rather than domestic retail businesses, indicating that higher volatility could benefit transaction income for institutions focused on investment banking.

JPMorgan states that, compared to U.S. peers, European investment banks are preferred due to valuation differences.

Barclays

JPMorgan lists Barclays as its top pick among global investment bank stocks. The firm notes that BARC is expected to have a 2027 price-to-earnings ratio of 7.1 times.

JPMorgan believes Barclays is a stock that has overreacted from a market price perspective.

Barclays is facing a fraud lawsuit filed by Tricolor Holdings noteholders and is also one of the lenders affected by the collapse of UK mortgage company Market Financial Solutions Ltd.

Deutsche Bank

Deutsche Bank ranks second in JPMorgan’s list. This German lender is expected to have a 2027 price-to-earnings ratio of 7.6 times. JPMorgan considers DBK another stock that has overreacted in the market.

Recent developments include S&P Global Ratings upgrading Deutsche Bank’s outlook to positive, and Moody’s also adjusting its margin outlook to positive. However, the bank’s multiple offices have been raided by German police as part of money laundering investigations.

In addition to the top two recommended stocks, JPMorgan highlights several other European lenders as attractive. Standard Chartered, Société Générale, UBS, BNP Paribas, and HSBC are all included in the firm’s list of preferred global investment banks.

Meanwhile, U.S. peers appear to have much higher valuations. JPMorgan states that Morgan Stanley’s expected 2027 P/E ratio is about 14.4 times, and Goldman Sachs’ is approximately 14.9 times, both higher than their European counterparts.

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