Citizens JMP reiterates Raymond James stock with $175 target

Published 24/04/2025, 10:08
Citizens JMP reiterates Raymond James stock with $175 target

On Thursday, Citizens JMP analyst Devin Ryan maintained a Market Outperform rating and a $175.00 price target for Raymond (NSE:RYMD) James Financial (NYSE: RJF), following the company’s release of its second fiscal quarter results for 2025. The financial services firm, currently valued at $29.16 billion, maintains a robust financial position with an "GOOD" health score according to InvestingPro analysis. Raymond James Financial’s operating earnings per share (EPS) for the quarter were reported at $2.43, narrowly surpassing the analyst’s projection of $2.39 and slightly below the consensus estimate of $2.45. The results were slightly impacted by a higher-than-anticipated tax rate, which represented a $0.09 drag with an actual rate of 26.2% versus the forecasted 23.5%.

Despite the tax rate variance, the core results of Raymond James were considered slightly better than expected. The firm’s revenue for the quarter was $3.4 billion, which was $20 million higher than anticipated, showing a modest increase of 0.6%. The company’s strong performance is reflected in its impressive 12.75% revenue growth over the last twelve months. Additionally, non-compensation costs were reported to be $27 million lower than expected, a decrease of 5%, while the compensation ratio of 64.5% aligned with the estimates. According to InvestingPro, the company trades at an attractive P/E ratio of 13.7x, suggesting potential value for investors.

The analyst’s reiteration of the Market Outperform rating and the $175 price target reflects confidence in Raymond James Financial’s performance and its ability to return capital at an accelerating pace. Notably, the company has maintained dividend payments for 41 consecutive years, demonstrating a strong commitment to shareholder returns. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers what really matters for informed investment decisions. The financial company’s latest quarterly results seem to validate the analyst’s positive outlook on the stock, as the figures came in slightly ahead or in line with expectations.

Investors and market watchers may note that the performance of Raymond James Financial in the second fiscal quarter of 2025 demonstrates a solid financial position, with results that met or exceeded various analyst projections. The company’s ability to manage costs effectively and generate revenue slightly above estimates could be seen as indicative of its operational strength, further supported by its strong current ratio of 2.13x and healthy debt-to-equity ratio of 0.4x.

In conclusion, the maintained Market Outperform rating and price target suggest that Citizens JMP views Raymond James Financial as well-positioned within the market, with the potential for continued growth and favorable financial returns.

In other recent news, Raymond James Financial Inc (NYSE:RJF). reported its second-quarter fiscal 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue compared to Wall Street expectations. The company’s EPS was $2.42, falling short of the forecasted $2.50, and revenue was $3.4 billion against a forecast of $3.45 billion. Despite a significant year-over-year increase in pretax income, the earnings miss may have contributed to a negative market reaction. Raymond James also announced new AI initiatives and leadership roles to enhance client service, reflecting its strategic focus on technology deployment. The firm ranks highly in investor satisfaction and industry trust, as evidenced by recent survey results. Additionally, Raymond James plans to invest in technology and platform capabilities, with a target of $400-$500 million in quarterly share buybacks. Analyst firms such as Citizens JMP and TD Cowen have noted the firm’s strong recruiting pipelines and robust balance sheet, highlighting its stability in uncertain market conditions. The company remains committed to maintaining non-compensation expense guidance of $2.1 billion, indicating a focus on cost management.

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