Analyst Ryan Kenny from Morgan Stanley maintained a Buy rating on Jefferies (JEF – Research Report) and decreased the price target to $75.00 from $81.00.
Ryan Kenny has given his Buy rating due to a combination of factors, despite some challenges faced by Jefferies. The management commentary from Jefferies acknowledges the current uncertainties impacting deal-making conditions, yet there is optimism about future prospects. The company has a strong dialogue around potential investment banking transactions and a high-quality backlog that continues to build, which could be realized once confidence and visibility improve.
Despite Jefferies reporting an EPS miss, which was below consensus expectations, Ryan Kenny sees potential for the stock. The miss was largely due to lower revenues across various segments, but the company has shown resilience in its capital markets activities. The expectation is that the current challenges are temporary, and as conditions stabilize, Jefferies is well-positioned to capitalize on its strong backlog and ongoing investment banking dialogues.
Kenny covers the Financial sector, focusing on stocks such as Lazard, Jefferies, and Evercore Partners. According to TipRanks, Kenny has an average return of -0.2% and a 39.68% success rate on recommended stocks.