Cautious Optimism for Jefferies Financial Group Amid Growth Potential and Market UncertaintiesWe agree with this view in our $74 JEF Base Case, which embeds a slower growing US economy with capital markets activity vs nominal GDP gradually improving back to 1994-2024 averages by 2027. Our expectation for improving capital markets activity is driven by elevated S&P 500 market valuations, 3 years of pent-up demand for M&A and IPO activity, a more transparent antitrust environment, and structural drivers for capital markets activity including demand for AI and cloud capabilities, the clean energy transition, innovation in biotech, reshoring in a multipolar world, and a rise in cross-border M&A.