Goldman Sachs analyst Alexander Blostein maintained a Hold rating on Stifel Financial (SF – Research Report) today and set a price target of $62.00.
Alexander Blostein’s Hold rating for Stifel Financial’s stock (SF) is based on several factors. Primarily, the company’s third quarter earnings per share (EPS) fell short of predictions, largely due to underperformance in its Investment Banking unit. The EPS was 12% below Goldman Sachs’s estimate and 10% lower than the general market consensus. This was mainly due to Investment Banking revenues being 18% lower than Street expectations, and a slight decrease in Net Interest Income (NII).
Moreover, cash revenues, which includes NII and Third Party Bank Sweep, were slightly below estimates at $291 million compared to the anticipated $296 million. This represents a 2% decrease on a sequential basis. Additionally, the company has been experiencing a negative trend in customer cash balances, with core client cash witnessing a roughly 10% quarter-on-quarter decrease. Furthermore, Stifel’s investment banking revenues of $146.9 million were significantly below consensus expectations of $179.2 million. Despite brokerage revenues performing better than expected, these factors collectively influenced Blostein to maintain a Hold rating for SF.
In another report released on October 11, UBS also maintained a Hold rating on the stock with a $62.00 price target.
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Stifel Financial (SF) Company Description:
Stifel Financial Corp. provides securities brokerage, investment banking, trading, investment advisory and related financial services. It operates through the following segments: Global Wealth Management, Institutional Group, and Other. The Global Wealth Management segment provides securities transaction, brokerage and investment services to clients. The Institutional Group segment involves in research, equity and fixed income institutional sales and trading, investment banking, public finance and syndicate. The Other segment interest income from stock borrowing activities, unallocated interest expense, interest income and gains and losses from investments held. The company was founded in1890 and is headquartered in St. Louis, MO.
Read More on SF:
- Stifel Reports Third Quarter 2023 Results
- SF Upcoming Earnings Report: What to Expect?
- Stifel Financial Schedules Third Quarter 2023 Financial Results Conference Call
- Financial Advisor Natalea Simmons Joins Stifel In Suburban St. Louis
- Stifel Financial price target lowered to $82 from $86 at JMP Securities
