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Investing.com - Citizens raised its price target on Raymond James (NYSE:RJF) to $185.00 from $180.00 on Thursday, while maintaining a Market Outperform rating on the financial services firm. According to InvestingPro data, the stock currently trades at $165.15 with a P/E ratio of 13.73, and analysis suggests the company is currently undervalued.
The research firm expects Raymond James to exceed current fiscal fourth-quarter consensus estimates, with Citizens’ own projection running approximately 4% higher at $2.93 per share. Several tailwinds are contributing to this optimistic outlook, including higher market prices. This aligns with InvestingPro data showing five analysts have revised their earnings upward for the upcoming period, while the company maintains strong financial health with an impressive current ratio of 6.53.
Citizens noted that Raymond James’ guidance for spread-based revenue to decline 2% sequentially was based on flat balances after excluding $1.5 billion in client advisory fees. However, the company is tracking better than projected, with a decrease closer to $1 billion, while loan growth remains solid.
Securities-Based Loans are expected to continue providing a near-term tailwind for net interest income, according to the research note. Citizens also adjusted its investment banking revenue projections upward, though it still anticipates a modest year-over-year decline due to challenging comparables.
The firm also highlighted that Raymond James’ Fixed Income Brokerage business is performing relatively well, benefiting from increased activity among depositories.
In other recent news, Raymond James Financial reported record client assets under administration, reaching $1.69 trillion in August 2025. This marks a 10% increase year-over-year and a 2% rise from the previous month, driven by higher equity markets and net asset inflows. Additionally, the firm announced the pricing of a $1.5 billion senior notes offering, divided into two tranches with varying maturity dates in 2035 and 2055. Raymond James also amended and extended its $1 billion credit facility, with the maturity date now set for September 2030.
In recruitment news, the company has added advisors Aaron Mabon and Summer Deal, who manage $190 million in assets, to its independent advisor channel. These developments come as BMO Capital initiated coverage on Raymond James with a Market Perform rating, citing the firm’s disciplined approach to advisor recruitment. This approach has supported earnings quality and operational consistency, though it has resulted in slower growth compared to competitors.
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