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On Wednesday, Citi analyst Chris Allen increased the price target for Stifel Financial (NYSE: SF) shares, raising it to $125 from the previous target of $115. The analyst sustained a Neutral rating on the stock, following the company’s performance in the recent earnings report. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, with shares trading near their 52-week high of $119.12.
Stifel Financial’s shares saw an approximate 2% rise after announcing their fourth-quarter earnings. The company benefited from favorable market conditions that boosted its wealth management segment, contributing to an impressive 57.66% return over the past year. Despite some challenges in recruiting, management expressed a positive long-term outlook. The institutional business is also showing strong momentum as it enters 2025, with a robust banking pipeline, especially in the financial sector. InvestingPro data reveals the company maintains a "GOOD" financial health score, supported by strong revenue growth of 9.78% in the last twelve months.
Management at Stifel Financial is optimistic about the company’s loan growth prospects, which are expected to contribute to net interest income (NII) growth in 2025. The overall sentiment from the company is positive post-earnings, with expectations of continued success in the future. For deeper insights into Stifel Financial’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In his commentary, Allen noted, "Healthy markets have been a tailwind for the wealth management business, and while recruiting has been a bit more challenged, management remains optimistic on the outlook over the long term." He also highlighted the strength in the institutional business, "Momentum heading into 2025 is strong and banking pipelines remain robust, particularly in financials."
On the banking side, the company’s management has a very constructive view of the loan growth outlook. This is anticipated to be a key driver for NII growth in the coming year. "Overall, we continue to like the story coming out of the quarter and while constructive on the long-term outlook, we await a better entry point at present," Allen concluded.
In other recent news, Stifel Financial Corp (NYSE:SF). has announced its definitive agreement to acquire European investment bank Bryan, Garnier & Co, marking a significant expansion of Stifel’s global advisory business. The acquisition is expected to enhance Stifel’s service offerings and market position in the investment banking sector, particularly within the healthcare and technology industries in Europe.
In recent developments, Stifel Financial has reported a significant rise in its third-quarter earnings per share (EPS) and net revenue. The EPS jumped to $1.50, a 150% increase from the previous year, while net revenue reached $1.23 billion, a 17% year-over-year increase. This robust financial performance led TD Cowen to increase Stifel Financial’s stock price target from $100.00 to $105.00, while JPMorgan initiated coverage with a Neutral rating and a price target of $120.00.
Furthermore, Stifel Financial has declared dividends for its common and preferred stock, with payments scheduled for mid-December. The company’s future expectations include surpassing $5 billion in revenue and achieving $8 in EPS by 2025, according to recent analyst notes.
Finally, Stifel Financial also reported a record high in total client assets under management, which reached $514 billion, including a record $197 billion in fee-based assets. This marks a 4% increase from October 2024, attributed to robust equity markets and successful financial advisor recruiting efforts.
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