Stifel stock price target raised to $135 at JMP Securities

On Thursday, JMP Securities analyst Devin Ryan increased the price target on Stifel Financial (NYSE:SF) to $135 from the previous $125, while maintaining a Market Outperform rating on the company’s shares. The revision followed Stifel’s fourth-quarter 2024 earnings release, which reported non-GAAP diluted earnings per share (EPS) of $2.23. This figure surpassed both JMP Securities’ estimate of $1.93 and the consensus estimate of $1.95. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward, and the company appears undervalued based on its Fair Value analysis.

The earnings beat was attributed to robust revenue across various segments, with transactional revenue coming in 12.7% higher than expected, investment banking revenue also exceeding expectations by 12.7%, and net interest income surpassing predictions by 4.1%. Stifel’s compensation ratio stood at 58%, aligning with projections, while non-compensation expenses were 7% higher, attributed primarily to irregular legal costs. The company’s strong execution has contributed to an impressive 60.6% stock return over the past year, with shares now trading near their 52-week high of $119.12.Discover more valuable insights about Stifel Financial and 1,400+ other stocks with InvestingPro’s comprehensive research reports.

A lower effective tax rate also contributed to Stifel’s earnings performance, bolstered by the company’s strong stock showing, which provided benefits related to stock-based compensation, adding $0.17 to the earnings outperformance.

Ryan noted that despite the inherent variability in certain revenue streams, such as investment banking revenues, and a one-time $20 million trading gain in fixed income, the core business drivers for Stifel were deemed to be quite constructive. This positive outlook on the company’s fundamental operations underpinned the decision to raise the price target on Stifel’s stock.

In other recent news, Stifel Financial has been making significant strides in the financial sector. The company recently reported a substantial rise in its third-quarter earnings per share (EPS) and net revenue, with the EPS jumping to $1.50 and net revenue reaching $1.23 billion. This robust financial performance led to TD Cowen increasing 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.

Stifel Financial also announced its definitive agreement to acquire European investment bank Bryan, Garnier & Co. This 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 addition, the company declared dividends for its common and preferred stock, scheduled for mid-December payments. According to recent analyst notes, the company’s future expectations include surpassing $5 billion in revenue and achieving $8 in EPS by 2025.

Recent developments also include a record high in total client assets under management, reaching $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.

Citi analyst Chris Allen increased the price target for Stifel Financial shares to $125 from the previous target of $115, maintaining a Neutral rating on the stock. Allen noted that healthy markets have been a tailwind for the wealth management business, and highlighted the strength in the institutional business, particularly in financials.

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