Stifel Financial stock price target raised to $135 by Citizens on growth outlook

Investing.com - Citizens raised its price target on Stifel Financial (NYSE:SF) to $135.00 from $130.00 on Thursday, while maintaining its Market Outperform rating on the financial services firm. The new target aligns with InvestingPro’s Fair Value assessment, with the stock showing strong momentum after a 30.5% gain over the past six months.

The research firm projects third-quarter earnings slightly below consensus at $1.81 per share compared to the Street’s $1.87 estimate, citing potential higher expenses as Stifel maintains its 58% compensation ratio guidance. The company has demonstrated solid profitability with a 94.8% gross margin and generated nearly $958 million in levered free cash flow over the last twelve months.

Citizens expects sequential improvement in Stifel’s third-quarter results, highlighting the stock as one of its favorite intermediate-term investment ideas due to "tremendous value" and several potential catalysts that could support positive sentiment. InvestingPro analysis reveals additional insights, including 8 consecutive years of dividend increases, with subscribers having access to 10 exclusive ProTips and comprehensive financial health metrics.

The firm sees near-term business momentum across Stifel’s Capital Markets businesses, with Investment Banking accelerating and growth potential in Fixed Income brokerage, noting that Stifel’s Institutional business is "much larger today than in the prior 2021 peak."

Citizens also pointed to the KBW platform potentially adding "an incremental couple hundred million of fees" as bank consolidation accelerates, along with expected healthy net new assets in Wealth Management as the firm continues to track "recruiting wins in the market."

In other recent news, Stifel Financial Corporation reported impressive results for the second quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $1.71, exceeding the expected $1.63, which constitutes a 4.91% surprise. Revenue also outperformed projections, reaching $1.28 billion compared to the anticipated $1.24 billion, marking a 3.23% revenue surprise. Additionally, Stifel Financial declared a quarterly cash dividend of $0.46 per share on its common stock, payable in September 2025. The firm also announced dividends for its preferred stock series, with specific amounts allocated for Series B, C, and D. In analyst coverage, BMO Capital initiated coverage on Stifel Financial with a Market Perform rating and set a price target of $121.00. BMO Capital highlighted Stifel’s strong position to benefit from potential increases in bank mergers and acquisitions. These developments reflect the company’s ongoing strategic initiatives and financial performance.

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