JPMorgan Chase & Co. (NYSE:JPM), the world’s largest publicly traded bank by market cap, issues market and stock predictions throughout the year. The bank has a cautious outlook on the economy for 2023, as it expects the Federal Reserve to raise the benchmark interest rates again in the near term.
While the inflation levels remained flat in October, raising hopes regarding a pause on further rate hikes, JPMorgan CEO Jamie Dimon expects the Fed to resume rate hikes next year.
“Personally, I think people are overreacting to short-term numbers — and they should stop doing that,” Dimon said. “I think inflation is probably a little stickier than that [data] shows.”
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Dutch Bros
Dutch Bros Inc. (NYSE:BROS), one of the most prominent coffee chains in the U.S., was recently upgraded by JPMorgan to Overweight. The multinational bank expects Dutch Bros stock to hit $35, indicating a potential upside of over 22%.
Investors have been optimistic regarding Dutch Bros stock after the company reported impressive revenue growth in the last quarter. In the third quarter, the company generated record revenue of $265 million, reflecting a 33% rise year over year. Dutch Bros’ net income rose by over 737% year over year to $13.4 million in the last quarter. Shares of BROS have surged by over 10.9% over the past month.
Dutch Bros also upgraded its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) outlook by $15 million to $150 million to $155 million for the current quarter because of stronger-than-expected year-to-date profitability. The company also raised its liquidity position in the last quarter, which should boost its long-term growth rate.
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“During Q3 in a span of less than 45 days, we executed two transactions, an upgrade of our credit facility and a follow-on equity offering that unlocked a total of almost $500 million in incremental liquidity and positioned our balance sheet to support a long runway of growth. We intend to continue confidently pursuing high-quality investments in new shops on our path to 4,000,” Dutch…
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