Thursday, Friedman, Billings, Ramsey upgraded Raymond James Financial Inc. (RJF) shares to Market Perform from Underperform and increased its price target to $15 from $12. However, the brokerage lowered its 2009 EPS estimate to $1.00 from $1.05.
Analyst Steve Stelmach upgraded the stock given that the stock valuation better reflects the risks associated with growing bank credit losses. Risk to earnings and valuation at RJ Bank still exists depending on the pace and severity of losses.
However, at current valuations, the analyst believes the downside risk is balanced with the stock's upside potential, should the capital market business begin to stabilize in 2010, as he expects. The analyst has not changed his fundamental outlook for provisioning at the bank or materially changed his expectations for the other business segments.
However, given the stock's significant underperformance since downgrade, the analyst does not expect the stock to materially lag the group given its current valuation. The analyst increased price target to $15.00 (a modest discount to TBV of $15.52), given his expectation that significant book value degradation is not on the horizon.
Currently, RJF is up $0.97 or 6.29% and trading at $16.38.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.