JPMorgan Chase & Co.’s (JPM) stock took a hit on Tuesday after an analyst downgraded his estimates for the bank’s earnings, citing concerns over rising interest rates and a potential slowdown in loan growth. Analyst Ken Worthington of JPMorgan Securities cut his third-quarter earnings estimate for JPMorgan to $2.65 per share from $2.75, and lowered his full-year estimate to $10.10 from $10.25. He also reduced his price target on the stock to $145 from $155. Worthington’s downgrade came a day after JPMorgan reported stronger-than-expected second-quarter earnings, which had boosted the stock. However, the analyst said that the bank’s earnings growth may be peaking, and that rising interest rates could put pressure on the bank’s net interest income. He also noted that loan growth could slow down in the second half of the year. JPMorgan’s stock dropped 2.3% in early trading on Tuesday.
