CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our target price at $47, using a forward P/E of 14.0x our FY 2024 (Nov.) EPS estimate, a slight discount to JEF’s five-year average multiple (14.8x). We keep our 2024 EPS estimate at $3.38 and 2025’s at $4.36. JEF reported Q4 2023 EPS of $0.29 vs. $0.57, a $0.08 consensus beat on revenues that came in 4% above consensus. Net revenues fell 17% Y/Y, as a weak 2023 for the capital markets came to a close. Investment banking (IB) revenues rose slightly Y/Y (+2%), on weak comps, driven by a significant improvement in underwriting (+53%), but offset by weakness in advisory (-18% Y/Y). Capital Markets (CM) revenues also saw a modest improvement (+1% Y/Y), with Equity CM up 8% Y/Y, but Debt CM pulling back 8% Y/Y. Asset Management revenues dropped 64% Y/Y, driven by previous spin-offs and sales within the merchant banking portfolio. Looking to 2024, we believe improvement within both the IB and CM segments is likely as falling interest rates and a resilient economy boost CEO confidence and spur deal activity.