MKM Partners Starts Stifel Financial (SF) at Buy

(Updated at 11:15)

MKM Partners initiated coverage on Stifel Financial (NYSE: SF) with a Buy rating and a price target of $67.00.

Analyst David Trone said, "The stock trades at 17x 2015 consensus of $3.21, but there is about $0.93 of "pending" EPS, including: (a) the full-year, run-rate contribution from the Sterne Agee merger; and (b) the impact of higher Fed rates on the GWM businesses. Therefore, we estimate the "adjusted" P/E at 13.5x, and only modestly above the institutional-only names. We value the stock at $67, which implies a more deserved adjusted P/E of 16x. Justifications include: (a) historical avg is around 16x-17x; (b) Stifel has a history of high growth; and (c) its more attractive mix. With 20%+ upside to this target, we are initiating with a Buy rating and 2015 EPS at $3.46."

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 $55.64 yesterday.

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