UPDATE: Credit Suisse Initiates Coverage on Stifel Financial

In a report published Wednesday, Credit Suisse analyst Christian Bolu initiated coverage on Stifel Financial SF with a Neutral rating, establishing a $49.00 price target. According to the report, under the leadership of CEO Ron Kruszewski, SF has proven to be a skilled acquirer, successfully completing 11 acquisitions since 2005. “This has in part driven an 11%-plus EPS CAGR. Recent acquisitions have focused on scale build within the institutional business (Knight & KBW),” the report noted. “We expect significant payoff should operating conditions improve (fixed income in particular) as well as from efficiency gains as mgmt. focuses on expense rationalization.” The report further asserted that it is expected the pace of growth could slow given the absolute size of the balance sheet and capital ratios at the bank subsidiary that are now at the lower end of peers. SF closed Tuesday at $48.90 with shares trading up at 1.41 percent.
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Posted In: Analyst ColorInitiationAnalyst RatingsChristian BoluCredit Suisse
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