UPDATE: Goldman Sachs Downgrades Stifel Financial to Sell on Growth Outlook

Goldman Sachs reduced its rating on Stifel Financial

from Neutral to Sell with a $28 price target. Goldman Sachs commented, "We believe the Street is too optimistic on SF's 2013 EPS growth outlook (+30% with a +200 bps pre-tax margin expansion), which we believe is unlikely absent a sharp recovery in volumes or retail investor risk appetite – two primary drivers for SF. We are 14% below the Street for 2013/2014. Furthermore, SF's valuation is stretched with the stock trading at a 20% premium to its closest peer, Buy-rated RJF (SF is at 14.5X our 2013 P/E versus RJF at 12.2X)." Stifel Financial closed at $32.15 on Friday.