Shares of Raymond James Financial (RJF) are up 7% after the U.S. investment bank reported quarterly financial results that surpassed Wall Street forecasts.
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The firm announced earnings per share (EPS) of $2.95 for what was its Fiscal fourth quarter ended September 30. That beat the consensus expectation among analysts that called for EPS of $2.42. Revenue in the quarter totaled $3.46 billion.
Like other Wall Street firms, executives at Raymond James attributed the strong results to growth in investment banking revenue and strong performance in its wealth management unit. The company’s private client group, which caters to the wealthy, posted record annual net revenue of $9.46 billion and record annual pretax income of $1.79 billion.
Boom Times on Wall Street
Raymond James and other banks are reporting strong financial results amid a boom on Wall Street. With equity markets hovering near all-time highs and interest rates declining, investment banks find themselves in a strong position.
Stock trading and managing the money of wealthy clients are pushing sales and profits higher on Wall Street. Investment banks such as Raymond James are also benefitting from a resumption of deals such as initial public offerings (IPOs) and mergers and acquisitions (M&A).
On an earnings call, Raymond James CEO Paul Reilly said, “Market conditions seem to be improving, and we are optimistic about our healthy pipeline and new business activity in M&A.” RJF stock has risen 33% so far in 2024.
Is RJF Stock a Buy?
The stock of Raymond James Financial has a consensus Moderate Buy rating among 12 Wall Street analysts. That rating is based on four Buy and eight Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average RJF price target of $130.50 implies 10.94% downside risk from current levels.
