Will This Analyst Downgrade Hurt Raymond James Financial (RJF) Stock Today? (Update)

Update (9:35 a.m.): Updated with Wednesday market open information.

NEW YORK (TheStreet) -- Goldman Sachs downgraded Raymond James Financial  (RJF) to "neutral" from "buy" and set a $54 price target. The firm noted the company lacks near-term catalysts.

The stock was flat at 9:35 a.m. on Wednesday.

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Separately, TheStreet Ratings team rates RAYMOND JAMES FINANCIAL CORP as a "buy" with a ratings score of A-. TheStreet Ratings 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, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

  • RJF's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 4.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • RAYMOND JAMES FINANCIAL CORP has improved earnings per share by 28.6% 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 ($3.17 versus $2.58).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. The net income increased by 30.8% when compared to the same quarter one year prior, rising from $79.96 million to $104.56 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Capital Markets industry and the overall market, RAYMOND JAMES FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: RJF Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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