Analyst Ryan Kenny from Morgan Stanley maintained a Buy rating on Jefferies (JEF – Research Report) and keeping the price target at $81.00.
Ryan Kenny has given his Buy rating due to a combination of factors influencing Jefferies’ stock. Despite a projected earnings per share (EPS) that is below consensus, the stock appears significantly undervalued, having decreased by 30% from its peak in January. This suggests potential for recovery as the market conditions improve.
Furthermore, Ryan Kenny anticipates that the capital markets will gain momentum in the latter half of the year, which could benefit Jefferies. The company’s strategy to return buybacks is expected to partially offset share-based compensation, maintaining investor confidence. Additionally, while the macroeconomic environment has temporarily hindered deal-making, management remains optimistic about future prospects.
In another report released on March 5, Goldman Sachs also maintained a Buy rating on the stock with a $75.00 price target.
JEF’s price has also changed slightly for the past six months – from $60.830 to $57.620, which is a -5.28% drop .