JPMorgan keeps up its future overweight rating to 42 dollars

Information online July 8, JPMorgan Chase July 7 released a research report, to maintain a good future stock "overweight" rating, its target share price from 34 U.S. dollars to 42 U.S. dollars. A good future will be announced on July 21, 2014 before the U.S. stock market opening (Beijing time July 21 evening), as of May 31, 2014, the first quarter of the fiscal year 2015, unaudited earnings. JPMorgan reported that the average selling price rose as new recruits increased, expecting a 31% per cent increase in earnings for the next 2014 to 2016 fiscal year. As management says sales and management costs are likely to rise abnormally in the 2015 fiscal year, analysts have averaged a fall in pre-tax profit margins for the first quarter of fiscal year 2015 and for the entire 2015 fiscal year. JPMorgan does not share the view that the company will achieve 36% per cent revenue growth in fiscal year 2015, enough to increase sales and management costs without depressing margins. JPMorgan cut its revenue forecasts for fiscal year 2015 to reflect the weakness of the renminbi, but raised its revenue forecast for fiscal year 2016 by 4% per cent on average, raising the net profit forecast for fiscal year 2015 and 2016 by 5.3% and 11.3% respectively. The reason is that the profit margin for fiscal year 2015 will not fall, and margins in fiscal year 2016 are expected to increase. A good future share price is 22.5 times times the 2015-year earnings ratio. JPMorgan's target price is $42 trillion, 27 times times the 2016-year earnings ratio. Key downside risks include higher wage and rental costs, competition from Internet content providers and other knowledge-based service providers. (Multi-Knowledge network Wang Tianyu)