JPMorgan Chase & Co (NYSE:JPM) shares rallied in early trading on Wednesday, after the release of fiscal second-quarter results.

The company continued to deliver best-in-class results, driven by strength in the equity capital markets, according to RBC Capital Markets.

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The JPMorgan Chase Analyst: Analyst Gerard Cassidy maintained an Outperform rating, while raising the price target from $330 to $370.

The JPMorgan Chase Thesis: The company reported record earnings for the quarter, with 27% year-on-year revenue growth on broad-based strength, Cassidy said in the note.

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He highlighted the following from JPMorgan Chase’s results:

  • Net income grew 41% year-on-year to $21.2 billion
  • Earnings came in at $7.70 per share.
  • Excluding one-time gains, net income grew by a strong 13% year-on-year to $16.9 billion.
  • Excluding one-time gains, earnings stood at $6.14 per share.

A net gain of $4.6 billion from share exchanges with Visa Inc (NYSE:V) and gains of around $1 billion on equity investments boosted the company’s net income, the analyst stated.

"Markets revenue was a standout at $12.1B, up 35% YoY, driven overwhelmingly by Equity Markets (+86% YoY)," he further wrote.

The Star Performer: The Commercial & Investment Bank (CIB) segment was the "star performer" in the quarter, Cassidy said. Net income from the business grew 46% year-on-year to $9.7 billion, with Equity Markets fees nearly doubling, he added.

"The company’s diversified business model combined with the billions of dollars of investments made over the last decade have resulted not only in a fortress balance sheet but also a highly profitable diversified banking model," Cassidy wrote.

Under the leadership of CEO Jamie Dimon, JPMorgan Chase could continue to "reward long-term shareholders with above-average profitability and returns" going ahead, the analyst further stated.

JPM Price Action: Shares of JPMorgan Chase had risen by 1.79% to $349.02 at the time of publication on Wednesday.

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