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Investing.com - BofA Securities has increased its price target on Raymond James (NYSE:RJF) to $194.00 from $173.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the company appears undervalued at its current price of $165, with 8 analysts recently revising their earnings expectations upward.
The adjustment follows Raymond James reporting earnings per share of $3.11 on Wednesday, significantly exceeding the consensus estimate of $2.84. The earnings beat was primarily driven by strong brokerage and investment banking revenues, along with a lower tax rate. The company maintains robust financial health with an impressive current ratio of 6.53 and has shown consistent revenue growth of 11.8% over the last twelve months.
Raymond James posted net new assets (NNAs) at an annualized rate of 5%, showing sequential improvement from 3.4% in the previous quarter. The growth came across all three of the company’s channels: employee, independent, and registered investment advisor (RIA).
While management expressed optimism about future organic growth, BofA Securities noted that the strength in net new assets was partially due to disruptions in the financial advisor space from mergers and acquisitions and consolidation, which the firm considers "partly unsustainable."
BofA Securities also highlighted that Raymond James is projected to lose approximately $3 billion in assets under custody in the first quarter of fiscal year 2026 due to bank mergers and acquisitions.
In other recent news, Raymond James Financial Inc. reported impressive fourth-quarter earnings for fiscal year 2025, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $3.11, exceeding the forecasted $2.82, and reported revenue of $3.73 billion against an expected $3.64 billion. Following these strong results, several firms adjusted their price targets for Raymond James. Keefe, Bruyette & Woods raised its price target to $181 from $174, maintaining a Market Perform rating, while BMO Capital increased its target to $182 from $180, also with a Market Perform rating. Citizens raised its price target even further to $190, citing a positive growth outlook and maintaining a Market Outperform rating. Citizens also adjusted its fiscal year 2026 earnings per share estimate to $12.55, positioning it 7% above the current consensus estimate. These developments reflect the company’s robust performance and optimistic projections for future growth.
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