On Thursday, Keefe, Bruyette & Woods analyst Kyle Voigt increased the price target for Raymond (NSE:RYMD) James (NYSE:RJF) shares to $177.00, up from the previous $170.00, while keeping a Market Perform rating on the stock. The adjustment follows Raymond James' reported earnings for the first quarter of fiscal year 2025, which surpassed expectations.
Raymond James reported a GAAP earnings per share (EPS) of $2.86 for the first quarter of fiscal year 2025, which was $0.41 higher than Keefe, Bruyette & Woods' estimate of $2.45. Additionally, the company's adjusted EPS of $2.93 exceeded the firm's estimate by $0.40 and was $0.25 above the consensus.
The higher adjusted EPS was attributed to several factors, including a lower provision adding $0.06 and a reduced tax rate contributing $0.09 to the beat. Even when excluding these items, the company's performance still represented a $0.25 adjusted EPS beat to Keefe, Bruyette & Woods' expectations. The Capital Markets segment, particularly strong in investment banking, was a significant contributor, accounting for $0.11 of the beat. The rest was mainly due to higher pre-tax income from the Private Client Group, stemming from a lower advisor compensation ratio at 74.0% of compensable revenues, and increased interest-related revenues.
In response to these results, Keefe, Bruyette & Woods has raised their forward EPS estimates for Raymond James. The firm's optimistic revision of the 12-month price target to $177 from $170 reflects the better-than-expected earnings and the positive developments in the company's Capital Markets and Private Client Group segments.
In other recent news, Raymond James Financial Inc . and SilverCrest Metals Inc (TSX:SIL). have experienced noteworthy developments. Raymond James reported impressive first-quarter fiscal year 2025 earnings, surpassing both JMP Securities' and consensus estimates with an operating EPS of $2.93 and revenues of $3.54 billion. Analyst firms Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), TD Cowen, BofA Securities, and Citi have adjusted their outlooks on Raymond James, with Goldman Sachs upgrading the stock to Buy. However, JPMorgan downgraded the stock to Neutral, citing valuation concerns.
Meanwhile, SilverCrest Metals Inc. announced a special meeting of shareholders, demonstrating the company's commitment to regulatory compliance and transparent shareholder communication. These are recent developments that investors may find noteworthy. As a reminder, the earnings estimates usually come from analysts who make projections, and these updates are based on their analysis.
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