TD Cowen adjusted its outlook on Stifel Financial (NYSE:SF), raising the price target to $88.00 from the previous $85.00 while maintaining a Hold rating on the company's stock.
The revision, which On Thursday, follows the review of the second-quarter 2024 results which were released on July 24, 2024. The firm's analysis highlighted Stifel Financial's resilience to cash sweep repricing risk, which supported the affirmation of the previous net interest income (NII) guidance.
In addition to recognizing the company's solid position against repricing risk, TD Cowen revised its 2025 earnings estimate back to $8.00. This adjustment was made after considering a reduction in long-term net new assets (NNA) and brokerage business (BB), coupled with a slight increase in projected costs.
The firm's 12-month sum-of-the-parts (SOTP) target was tweaked upwards by $3, settling at the new $88.00 figure. This adjustment reflects the analyst's updated expectations for the company's financial performance and valuation.
Meanwhile, Stifel Financial Corp has witnessed significant developments. The company reported strong Q1 2024 results, with total net revenue exceeding $1.16 billion, marking the second-highest in the company's history. The global wealth management segment saw record highs, contributing significantly to the company's performance. Stifel Financial also reported a 12% rise in total client assets and a 15% increase in fee-based client assets from the same period in 2023.
Stifel Financial's stock, however, was downgraded from Outperform to Peer Perform by Wolfe Research due to concerns over the company's cash sweep outlook. TD Cowen also revised its stance, downgrading the stock from Buy to Hold and reducing the 12-month price target to $89 from the previous $94 based on a reassessment of the company's earnings projections for 2024 and 2025.
InvestingPro Insights
In light of TD Cowen's revised outlook on Stifel Financial (NYSE: SF), current metrics and trends from InvestingPro reveal additional insights into the company's financial health and future prospects. With a robust Market Cap of $8.72 billion and a P/E Ratio that has adjusted to a more attractive 15.22 over the last twelve months as of Q2 2024, Stifel Financial presents a compelling case for investors seeking value. The company's Revenue Growth stands at 5.88% during the same period, underscoring a steady upward trajectory.
InvestingPro Tips further enrich the analysis with the knowledge that management's confidence is reflected through aggressive share buybacks, and the company has a history of rewarding shareholders with 7 consecutive years of dividend raises. Additionally, Stifel Financial has been profitable over the last twelve months and is predicted by analysts to maintain profitability this year. These factors, combined with a strong return over the last five years, paint a picture of a financially sound company with a commitment to shareholder value.
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