Zacks Investment Research upgraded shares of Raymond James Financial Inc. (RJF) from UNDERPERFORM to NEUTRAL on October 07, 2013, with a target price of $43.00.
We are upgrading our long-term recommendation on Raymond James to Neutral based on its steady balance sheet position which supports its efficient capital deployment activities. Moreover, the company's fiscal third-quarter (ended Jun 30) earnings were in line with the Zacks Consensus Estimate but a penny above the prior-year quarter figure. Results were driven by a rise in revenues, partially offset by higher operating expenses. Moreover, growth in assets under management (AUM) and assets under administration were among the positives. The company's capital strength, efforts to boost revenues by recruiting experienced advisors, and synergies from its acquisitions are expected to be accretive to its financials going forward. Nevertheless, a still low interest rate environment, regulatory issues, and sluggish economic recovery are expected to keep profitability under pressure in the near term.
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