Wells Fargo Downgrades Raymond James (RJF) to Market Perform; Fairly Valued

May 21, 2013 7:15 AM EDT Send to a Friend
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Price: $58.78 +1.26%

Rating Summary:
    7 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 17 | New: 15
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Wells Fargo downgraded Raymond James (NYSE: RJF) from Outperform to Market Perform with a $45-$50 valuation range saying the recent stock run is like CQ1 never happened.

Analyst Christopher Harris comments, "We downgrade our rating on RJF to Market Perform from Outperform following a sharp rally post CQ1-miss. While we continue to believe RJF is a great company with a strong management team, we believe the risk/reward is now neutral given (1) still-elevated Street expectations and (2)
fundamental challenges we expect at the bank."

He continued, "We acknowledge RJF's stock will work in a bull market, but so will others and the shares look fairly valued to us at 14x, which is not too far off from its avg forward multiple in 2006. No change to our EPS estimates ($2.79 for FY2013/ $3.24 for FY2014) or valuation range ($45-50), which implies about 4% upside to the midpoint."

For an analyst ratings summary and ratings history on Raymond James click here. For more ratings news on Raymond James click here.

Shares of Raymond James closed at $45.72 yesterday.

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