Piper Jaffray Gets Bump Following Goldman Upgrade

NEW YORK (AP) — Shares of Piper Jaffray Cos. joined the broader market rally Wednesday after Goldman Sachs upgraded the investment bank, citing an improving market for new stock issues.

Goldman analyst Daniel Harris raised his rating in Minneapolis-based Piper Jaffray to "Buy" from "Neutral" and added the stock to his "Conviction Buy" list, a recommended portfolio. He also upped his price target on the shares to $60, from $47.

In midday trading, Piper Jaffray shares rose $2.44, or 5.3, to $48.74, after earlier hitting a 52-week high of $49.40. The stock previously changed hands between $18.51 and $49.31 in the past 52 weeks, and started the session up about 16 percent for the year.

Harris said the increasing number of companies issuing stock, both in initial public offerings and follow-on sales, should boost earnings for Piper Jaffray. He noted the company participated in four equity offerings in the past few weeks. A sustained recovery in equity capital markets should translate into rebounding equity underwriting revenues for Piper Jaffray in the next few years, Harris wrote in a note to clients.

"Piper Jaffray derives the bulk of its net revenues from security underwriting and trading," he noted. "We believe the firm is poised to capitalize on an expected upturn in equity capital markets activity, due to its middle market expertise and strong positioning in more defensive industries such as healthcare."