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Why This Raymond James Analyst Sees Upside To $110

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Why This Raymond James Analyst Sees Upside To $110

The bearish case for financial services firm Raymond James Financial, Inc. (NYSE: RJF) has come to an end, and the stock's risk to reward profile is "skewing increasingly more positive," according to Goldman Sachs analysts.

The Raymond James Analyst: Alexander Blostein upgraded Raymond James from Sell to Buy with a price target lifted from $82 to $110.

The Raymond James Thesis: Raymond James boast three catalysts that will help lift the stock higher by around 15%, Blostein wrote in the upgrade note. They are: 

1). Headwinds stemming from lower interest rates and higher credit costs are "largely in the run-rate."

2). The firm's Wealth Management business has recovered from 2020 lows and has a strong outlook.

3). An improved outlook for the M&A and Advisory business that will help support Capital Markets revenue above 2019 levels.

Related Link: Benzinga's Top Upgrades, Downgrades For January 5, 2021

These three catalysts, coupled with Raymond James' expense initiatives, will help keep the company's comp rate below management's 70% target in 2021 and help generate a pre-tax margin of around 15%, the analyst said.

As such, now might be a good time to buy Raymond James' stock after it gained just 6% in 2020 versus two close peers that averaged a 20% gain last year, according to Goldman Sachs. 

Price Action: Shares of Raymond James Financial ended Tuesday's session up 0.39% at $94.40. 

Latest Ratings for RJF

DateFirmActionFromTo
Jan 2021Credit SuisseMaintainsNeutral
Jan 2021Morgan StanleyMaintainsOverweight
Jan 2021Wells FargoUpgradesUnderweightOverweight

View More Analyst Ratings for RJF
View the Latest Analyst Ratings

 

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Posted-In: Alexander Blostein banks Goldman SachsAnalyst Color Upgrades Price Target Analyst Ratings

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