In a report published Wednesday, Credit Suisse analyst Christian Bolu initiated coverage on Raymond James Financial, Inc. RJF with an Outperform rating, establishing a $60.00 price target.
According to the report, analysts establish 2014-2016 EPS estimates of $3.20, $3.75 and $4.35 implying an impressive 13-16 percent CAGR over the next three years.
“RJF enjoys an industry-leading position as a top three independent retail brokerage house with a L/T track record of 10%-plus organic client asset growth,” the report noted. “As with retail broker peers, earnings remain depressed in the current interest rate environment; we expect 20-40% boost to the bottom line as rates ultimately normalize. All in all, we see RJF as an attractive way to play retail re-engagement & rising interest rates–two of the likely dominant macro theme over the next few years.”
Some highlights from the report included:
-Poised for Operating Margin Expansion
-Client Cash—An Under Optimized Gem; Key to $5 Earnings Power
-Significant Growth Opportunities
-Strong EPS Prospects with Attractive Valuation
RJF closed Tuesday at $53.28 with shares trading up at 1.33 percent.
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