JP Morgan Raises the Bar on Banks and More

JP Morgan's analysts swept through the financial sector on Friday, lifting target prices on a string of US banks and trust companies.

State Street received the biggest absolute lift, with its target raised to $192.50 from $187.50. Northern Trust moved to $191.50 from $185. Both stocks remain Holds, but the scale of the increases points to improving confidence in custody bank earnings.

Republic Services got the most eye-catching upgrade in numeric terms. JP Morgan's Tami Zakaria raised the waste management giant's target by $20, from $245 to $265, while keeping a Hold rating. That kind of target lift without a rating change suggests the analyst sees less downside but is not yet ready to call it a buy.

In pharma, Chris Schott lifted Merck to $175 from $165 with a Buy rating intact. The $10 increase is meaningful for a stock that has faced pipeline pressure.

The one cut of the morning came at Ares Management, where Kenneth Worthington trimmed the target to $154 from $155. The reduction is minor but notable: Ares holds a Buy rating, so any step back draws attention in a sector where alternative asset managers have broadly rerated higher.

Across the regional banks, Truist, Regions Financial, U.S. Bancorp, and PNC Financial all received modest target bumps from the same JP Morgan desk, reflecting steady post-earnings optimism across mid-tier lenders.