Morgan Stanley analyst Ryan Kenny has maintained their neutral stance on JEF stock, giving a Hold rating on October 17.
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Ryan Kenny’s rating is based on a combination of factors that reflect both optimism and caution regarding Jefferies Financial Group. While there is a positive outlook on the company’s potential for growth, especially with its expanded partnership with SMBC and increased headcount, there are also concerns that temper expectations. The recent stock pullback is seen by some as excessive, given Jefferies’ limited direct exposure to First Brands, which is considered manageable.
Despite these positive indicators, the Hold rating suggests a balanced view, acknowledging potential risks such as the indirect impacts of the First Brands bankruptcy and the broader economic environment. The expectation for capital markets activity to gradually improve by 2027 supports a stable outlook, but not enough to warrant a more aggressive rating. Therefore, the Hold rating reflects a cautious optimism, recognizing both the opportunities and the uncertainties facing Jefferies.
In another report released on October 17, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $50.00 price target.