From Financial Modeling Prep: 2025-01-06 19:24:00

Goldman Sachs analysts upgraded Raymond James (NYSE:RJF) from Neutral to Buy, with a price target of $185. The upgrade is based on confidence in the company’s potential for earnings growth, operating leverage, and capital return flexibility in the coming years.

Raymond James is expected to see mid-to-high single-digit upside in fiscal 2025-2027 EPS, driven by a rebound in cash-related revenue growth and normalization in capital markets activity. The firm’s strong positioning in U.S.-focused and sponsor-based M&A revenues positions it well for recovery in these areas.

Analysts believe the market underestimates Raymond James’ operating leverage potential, with pre-tax margins expected to outperform consensus estimates by approximately 100 basis points. The company’s excess capital of over $2.5 billion provides flexibility for meaningful capital returns.

Raymond James is currently trading at 13 times next-12-month P/E, a more than 40% discount to the S&P 500. This significant discount compared to historical averages suggests potential for upward revaluation, indicating room for growth in the stock’s valuation.



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