Ticonderoga Maintains a 'Neutral' on Raymond James (RJF); Reports April Operating Data - Raising Estimates
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Price: $180.81 -0.1%
Rating Summary:
9 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Neutral' on Raymond James (NYSE: RJF).
Ticonderoga analyst says, "RJF reported monthly April metrics. Commission and fee revenues of $182.5 million were marginally below our estimate but client assets levels of $282 billion were above our estimate. This has positive implications moving forward, as 60% of retail commissions are now recurring. On a per day basis, commissions and fees were up 7% year over year. Our revised 2011 and 2012 EPS estimates are $2.64 and $2.84, respectively, compared with $2.63 and $2.77 previously."
"Market Slowdown Impacting Investment Banking - It sounds as if market activity has slowed investment banking some. RJF has led several IPOs this quarter and maintains a healthy backlog. However, the sell-off in commodities and greater risk aversion may slow backlog recognition."
"Shares Attractive But Markets Are Largely the Driver -�Shares of RJF are attractive trading at 13x our FY2011 EPS estimate and less than 13x forward four quarter estimates. However, we believe future catalysts for earnings expansion will largely be driven by market interest rates rather than broker headcount growth or material declines in credit costs. We do believe fair value is in the $37-$38 range, so we do see some upside."
For more ratings news on Raymond James click here and for the rating history of Raymond James click here.
Shares of Raymond James closed at $34.98 yesterday.
Ticonderoga analyst says, "RJF reported monthly April metrics. Commission and fee revenues of $182.5 million were marginally below our estimate but client assets levels of $282 billion were above our estimate. This has positive implications moving forward, as 60% of retail commissions are now recurring. On a per day basis, commissions and fees were up 7% year over year. Our revised 2011 and 2012 EPS estimates are $2.64 and $2.84, respectively, compared with $2.63 and $2.77 previously."
"Market Slowdown Impacting Investment Banking - It sounds as if market activity has slowed investment banking some. RJF has led several IPOs this quarter and maintains a healthy backlog. However, the sell-off in commodities and greater risk aversion may slow backlog recognition."
"Shares Attractive But Markets Are Largely the Driver -�Shares of RJF are attractive trading at 13x our FY2011 EPS estimate and less than 13x forward four quarter estimates. However, we believe future catalysts for earnings expansion will largely be driven by market interest rates rather than broker headcount growth or material declines in credit costs. We do believe fair value is in the $37-$38 range, so we do see some upside."
For more ratings news on Raymond James click here and for the rating history of Raymond James click here.
Shares of Raymond James closed at $34.98 yesterday.
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