UPDATE: Citigroup Initiates Raymond James Financial at Buy on EPS, Margin Mix

Citigroup initiated coverage on Raymond James Financial

with a Buy rating and a $44 price target. Citigroup commented, "Key reasons to own — 1) controllable + outsized EPS growth (18% two-year CAGR) relative to peers, fueled by ~$0.20 p.s. (or 8%) MK-related deal synergies – upward rate cycle would be accretive to our expectations; 2) favorable mix shift into higher margin businesses; 3) Private Client Group (~60% of revenue, ~40% pre-tax income) well positioned for growth; 4) faster loan growth than peers/industry; and, 5) rate play." Raymond James Financial closed at $38.56 on Monday.