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Qabil Ashirov

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JPMorgan Chase & Co. could become the first bank to surpass a market capitalization of $1 trillion.

A Bank of America analyst believes that even at that valuation, the financial giant’s shares would continue to trade at a relatively attractive discount to the broader market, making them difficult for investors to ignore.

The analyst noted that the 11 companies in the S&P 500 with market capitalizations above $1 trillion, including Nvidia, Alphabet and Apple, have significantly higher price-to-earnings (P/E) ratios than JPMorgan.

In the analyst’s view, JPMorgan could benefit from being “the only company outside the technology sector with a $1 trillion market capitalization” while trading at around 15 times earnings.

Wall Street analysts are divided over whether JPMorgan shares can continue to rise. According to Bloomberg, none of the analysts currently recommends selling the stock: 18 analysts rate it a “buy,” while another 15 recommend holding the shares.

However, the average analyst price target stands at $375. That target suggests JPMorgan’s market capitalization is unlikely to reach $1 trillion over the next 12 months.

Bank of America, with a market capitalization of less than $450 billion, is currently the second-largest U.S. bank after JPMorgan.