Nomura Securities Starts Stifel Financial (SF) at Neutral

January 9, 2014 8:54 AM EST
Get Alerts SF Hot Sheet
Price: $48.90 +0.60%

Rating Summary:
    8 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Nomura Securities initiates coverage on Stifel Financial (NYSE: SF) with a Neutral. PT $46.00.

"We struggle to justify a positive rating on Stifel shares, as the revenue contribution from lower-multiple Institutional businesses continues to build and the valuation appears too rich trading above 17x consensus NTM earnings," analyst Steven Chubak states. "However, management’s plan to grow the bank could provide a meaningful boost to the bottom line, as lending activities produce much higher margins, and the potential upside here is not reflected in consensus forecasts (which our 2014E-15E EPS estimates are ~6% above). Given elevated short interest (7% of float and 15 days to cover), and Street numbers that appear too low, we caution shorts to tread lightly. FY13E EPS at $2.35; FY14E EPS at $2.88."

For an analyst ratings summary and ratings history on Stifel Financial click here. For more ratings news on Stifel Financial click here.

Shares of Stifel Financial closed at $48.70 yesterday.

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