Raymond James (RJF) PT raised to $185 at Citizens on earnings beat outlook

Citizens analyst Devin Ryan raised the price target on Raymond James (NYSE: RJF) to $185.00 (from $180.00) while maintaining a Market Outperform rating.

The analyst commented, "We expect RJF to beat current F4Q consensus (we are 4% above at $2.93). We see tailwinds coming from several areas, including higher market prices. We note that the company’s guidance for spread-based revenue to decline 2% sequentially was based on flat balances after backing out the $1.5B client advisory fees, but thus far the company is tracking better than that — down closer to $1B — while loan growth remains solid and should continue as a tailwind for NII, particularly in Securities-Based Loans in the near term. Investment Banking revenue represented an upward adjustment in our model, although we note that the comparable from a year ago is quite high, so we still expect a modest year-over-year decline. We also believe the Fixed Income Brokerage business is performing relatively well as depositories become more active."

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