Jefferies Financial Group: Resilience and Growth Amidst Challenging Investment Banking Environment

Goldman Sachs analyst James Yaro maintained a Buy rating on Jefferies (JEF – Research Report) on June 3 and set a price target of $60.00.

James Yaro has given his Buy rating due to a combination of factors impacting Jefferies Financial Group. Despite a slow investment banking environment, Jefferies has shown resilience with a notable increase in their M&A completions, outperforming the industry average. This suggests potential for stronger performance in the upcoming quarters.
Moreover, Jefferies has demonstrated robust growth in their backlog, significantly surpassing the industry average, which indicates a positive outlook for future investment banking activities. Additionally, their equities trading and asset management segments have shown strength, supported by favorable market conditions and healthy retail trading trends. These elements contribute to a stable revenue forecast and a promising long-term return on tangible common equity (ROTCE), justifying the Buy rating.

JEF’s price has also changed moderately for the past six months – from $77.950 to $49.260, which is a -36.81% drop .