UPDATE - Ticonderoga Upgraded Raymond James (RJF) to Buy; Shares Undervaluing Return Potential
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Price: $175.20 +1.65%
Rating Summary:
9 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Ticonderoga upgraded Raymond James (NYSE: RJF) from Neutral to Buy. PT $37.
Ticonderoga analyst says, "RJF is a safe play on improving equity markets. While markets remain choppy, we do believe the risk reward is highly favorable. Our target is $37 or 14x our forward four quarter earnings estimate of $2.67. ROE of 12-13% and ROA approaching 2% is supportive of a 14x multiple in our view. In conjunction with the May release and weaker markets in June, we are modestly adjusting our F2011 estimate to $2.58 from $2.64; our F2012 estimate remains unchanged at $2.84."
"Client assets for the month of May were flat with last month despite a 1.3% decline in the S&P. Note RJF did benefit from $1 billion increase in client AUM from the Howe Barnes acquisition. While there will be some negative implication from billings do to market weakness next quarter, outperformance in assets will help to mitigate it. Stability in the franchise despite sizable industry equity outflows recently is impressive. Markets remain a drag but levers exist in banking market share, even still lower provision expense, and eventually, a rise in interest rates."
Ticonderoga analyst says, "RJF is a safe play on improving equity markets. While markets remain choppy, we do believe the risk reward is highly favorable. Our target is $37 or 14x our forward four quarter earnings estimate of $2.67. ROE of 12-13% and ROA approaching 2% is supportive of a 14x multiple in our view. In conjunction with the May release and weaker markets in June, we are modestly adjusting our F2011 estimate to $2.58 from $2.64; our F2012 estimate remains unchanged at $2.84."
"Client assets for the month of May were flat with last month despite a 1.3% decline in the S&P. Note RJF did benefit from $1 billion increase in client AUM from the Howe Barnes acquisition. While there will be some negative implication from billings do to market weakness next quarter, outperformance in assets will help to mitigate it. Stability in the franchise despite sizable industry equity outflows recently is impressive. Markets remain a drag but levers exist in banking market share, even still lower provision expense, and eventually, a rise in interest rates."
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