investors should buy shares of jpmorgan chase for 2023 according to morgan stanley analyst betsy graseck double upgraded the banks stock to overweight from underweight saying jpmorgan will have positive operating leverage next year operating leverage indicates how well a company can raise operating income by generating revenue we double upgrade jpm to overweight from underweight on operating leverage inflecting positively ccb jpms consumer  community bank taking market share relative multiple resiliency during recessions and progress being made on higher cet1 common equity tier 1 ratio regulatory requirements graseck wrote in a tuesday note jpmorgan has struggled this year as us economic activity became more sluggish with the stock down 17 in that time thats a slightly bigger decline than the s  p 500s 161 loss for 2022 still her 153 price target raised from 126 implies about 16 upside from mondays close shares of jpmorgan rose 18 in tuesday premarket trading the analyst said negative operating leverage in 2022 was a key reason for her underweight rating as operating leverage is the biggest driver of large cap bank stock alpha the firm expects jpmorgan will deliver 110 basis points of positive operating leverage in 2023 with revenues up 10 and expenses up 9 year over year while 110bps isnt an eyepopping number its a significant inflection from the last two years of negative operating leverage at jpm 510bps in 2021est 260bps in 2022 graseck wrote meanwhile jpmorgan is making progress on higher regulatory capital requirements and taking deposit share across the country according to the analyst the firm also derates less than peers during a recession —cnbcs michael bloom contributed to this report