, an analyst from BMO Capital, has initiated a new Hold rating on Stifel Financial (SF).
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BMO Capital has given its Hold rating due to a combination of factors influencing Stifel Financial’s current market position. The firm is strategically poised to benefit from an anticipated increase in bank mergers and acquisitions, thanks to its strong KBW franchise. This advantage could allow Stifel Financial to capture a significant share of the market as deal activity picks up.
Despite this potential, Stifel’s growth has been slower compared to its peers, reflecting a disciplined management approach that has only recently shown signs of becoming more aggressive. The wealth management segment, while a valuable asset, is not expected to be sold, limiting immediate growth catalysts. Furthermore, although Stifel’s business mix suggests it should be valued more like a wealth manager, the market continues to view it closer to an investment bank, and without a clear catalyst, this perception is unlikely to change in the near term.
In another report released on September 25, TD Cowen also maintained a Hold rating on the stock with a $118.00 price target.