12:25 PM EDT, 05/21/2024 (MT Newswires) -- JPMorgan Chase's ( JPM ) stock underperformed the S&P 500 by 5% during Monday's Investor Day after disappointing remarks on buybacks from Chief Executive Officer Jamie Dimon, Morgan Stanley said Tuesday in a report.

The stock is expected to rebound on spending from a $17 billion "tech war chest" with net interest income topping expectations "again and again," the report said.

JPMorgan ( JPM ) shares declined Monday after Dimon said that repurchasing shares at over 2x tangible book value per share "is a mistake" and the bank wouldn't buy back a lot of stock with these prices, Morgan Stanley said

"The market clearly interpreted this to mean no buybacks," the report said.

Morgan Stanley said reduced its Q3 buyback estimate to $3 billion from $8.4 billion and Q4 to $4 billion from $8.8 billion.

The brokerage also lowered its 2024 earnings per share estimate $0.12 to $16.84 and the 2025 EPS estimate by $0.25 to $16.48, partly on higher expenses.

Morgan Stanley cut its price target on JPMorgan ( JPM ) stock to $214 from $216 and maintained an overweight rating.

JPMorgan ( JPM ) shares rose 1.1% in recent Tuesday trading.

Price: 197.73, Change: +2.15, Percent Change: +1.10