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Raymond James Financial, Inc. (RJF) is a leading player in the financial services sector with a market cap of $24.6 billion. Based in Saint Petersburg, Florida, the company serves individuals, corporations, and municipalities through its extensive network of subsidiaries.
Shares of Raymond James have underperformed the broader market over the past 52 weeks. RJF has rallied 15.1% over this time frame, while the broader S&P 500 Index ($SPX) has surged 27.7%. Meanwhile, in 2024, RJF stock gained 5.5%, compared to SPX’s nearly 18% rise on a YTD basis.
Zooming in further, RJF has also lagged behind the US Financials iShares ETF’s (IYF) around 36% gain over the past 52 weeks and a 20.6% return on a YTD basis.
Shares of Raymond James rose 5.2% following its Q3 earnings release on Jul. 24 due to a robust performance with adjusted profits of $508 million, up 27% from the previous year. The company exceeded analysts' expectations with a 29% increase in EPS to $2.39 and an 11% rise in net revenues to $3.2 billion. Record revenues, client assets, and bank loans, combined with significant growth in assets under administration and net new assets, along with strong advisor recruitment and an optimistic M&A pipeline outlook, further boosted investor confidence.
For the current fiscal year, ending in September, analysts expect RJF's EPS to grow 15.3% year over year to $9.57. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 12 analysts covering the stock, the consensus rating is a “Moderate Buy.” That is based on three “Strong Buy” ratings and nine “Holds.”
This configuration has remained fairly steady over the past months.
On Aug. 22, TD Cowen analyst William Katz reiterated a “Holds” rating on Raymond James, with a price target of $123.
The mean price target of $129.40 represents a premium of roughly 10% to RJF’s current levels. The Street-high price target of $141 implies a modest potential upside of 19.8% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
