Morningstar

JPMorgan Chase: Two Now Race to Fill Jamie Dimon’s Shoes

We believe the firm will continue to operate as the gold standard of the industry.

JPMorgan Chase Building, building exterior detail.
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Securities in This Article
JPMorgan Chase & Co
(JPM)

Key Morningstar Metrics for JPMorgan Chase

  • Fair Value Estimate
    : $311.00
  • Morningstar Rating
    : ★★★
  • Morningstar Economic Moat Rating
    : Wide
  • Morningstar Uncertainty Rating
    : Medium

On June 25, JPMorgan Chase JPM announced the promotions of Doug Petno and Troy Rohrbaugh, co-CEOs of the commercial and investment bank segment, to co-presidents as part of ongoing succession planning for the eventual retirement of long-tenured CEO Jamie Dimon.

Why it matters: After explicitly announcing at the company’s 2024 investor day that Dimon’s timetable to step down as CEO was “less than five years,” there has been increased focus on who will be handed the reins to the largest, most systemically important financial institution in the United States.

  • Petno and Rohrbaugh’s promotion signals them as the prime candidates to become the next CEO. That’s a material development, since Marianne Lake, who heads the consumer and community banking segment and was previously considered one of the CEO frontrunners, has decided to retire.
  • Due to Lake’s retirement, Petno will now become the sole CEO of the commercial and investment bank segment, while Rohrbaugh will become the sole CEO of the consumer and community banking segment.

The bottom line: Though Dimon’s tenure as CEO over the prior two decades has been nothing short of prolific, we don’t believe his retirement will impact the intrinsic value of wide-moat JPMorgan Chase, and our $311 fair value estimate implies shares are fairly valued.

  • We do not believe appointing Petno or Rohrbaugh as CEO would represent a meaningful change in the firm’s long-term strategy, and we believe the firm will continue to operate as the gold standard for the industry across a wide array of business lines with a conservative balance sheet.
  • We hypothesize that the market may incorporate a slight “Dimon premium” into share prices due to his steady hand and experience, with any material selloff following his retirement potentially creating an opportunity for investors to build a stake in the highest-quality banking franchise in the United States.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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