Raymond James (RJF) Scores Positive Credit Suisse Rating

NEW YORK (TheStreet) -- Credit Suisse initiated coverage on Raymond James (RJF) with an "outperform" rating and a $60 price target. 

Credit Suisse justified the call by pointing to the investment bank's attractive play on retail engagement and rising interest rates. 

On Wednesday, shares climbed 1.3% to $53.28.

TheStreet Ratings team rates RAYMOND JAMES FINANCIAL CORP as a Buy with a ratings score of A. The team has this to say about their recommendation:

"We rate RAYMOND JAMES FINANCIAL CORP (RJF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 28.89%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the stock's future course, although almost any stock can fall in a broad market decline, RJF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • RAYMOND JAMES FINANCIAL CORP has improved earnings per share by 36.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RAYMOND JAMES FINANCIAL CORP increased its bottom line by earning $2.58 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($3.14 versus $2.58).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Capital Markets industry average. The net income increased by 41.0% when compared to the same quarter one year prior, rising from $83.33 million to $117.46 million.

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