Wells Fargo has revised its price target for Stifel Financial (SF, Financial), decreasing it from $106 to $102, while maintaining an Overweight rating for the stock. This adjustment follows a weaker-than-expected performance in the first quarter. Despite the dip, Wells Fargo suggests that the underperformance might be exaggerated.
Stifel Financial's current valuation is seen as an advantageous position, especially as the outlook for capital markets shows signs of improvement. Additionally, Stifel's commitment to its 2025 guidance is recognized positively by Wells Fargo. This stability in its long-term goals highlights potential resilience, making the updated price target a reflection of both recent challenges and emerging opportunities in the market recovery.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Stifel Financial Corp (SF, Financial) is $106.00 with a high estimate of $120.00 and a low estimate of $93.00. The average target implies an upside of 28.02% from the current price of $82.80. More detailed estimate data can be found on the Stifel Financial Corp (SF) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Stifel Financial Corp's (SF, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Stifel Financial Corp (SF, Financial) in one year is $84.92, suggesting a upside of 2.56% from the current price of $82.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Stifel Financial Corp (SF) Summary page.
SF Key Business Developments
Release Date: April 23, 2025
- Net Revenue: $1.26 billion, marking the strongest first quarter in Stifel's history, an 8% increase year-over-year.
- Operating EPS: $1.65, an 11% increase over the same period a year ago, excluding a significant legal charge.
- Legal Charge: $180 million, resulting in a $1.16 negative impact on EPS.
- Compensation Ratio: 58%, aligning with the high end of full-year guidance.
- Operating Pre-Tax Margin: Exceeded 20%, consistent with previous quarters.
- Global Wealth Management Revenue: $851 million, with pre-tax margins of 36% excluding the legal charge.
- Investment Banking Revenue: $238 million, driven by increases in advisory and capital raising revenue.
- Asset Management Revenue: Record high, up 11% year-over-year.
- Net Interest Income: $262 million, with a net interest margin of 3.1%.
- Client Assets: Fee-based assets of $190 billion and total client assets of $486 billion.
- Tier 1 Leverage Capital Ratio: 10.8%, with approximately $324 million of excess capital.
- Share Repurchases: Approximately 2 million shares repurchased, with 9.2 million shares remaining on current authorization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Stifel Financial Corp (SF, Financial) achieved a record first-quarter revenue of $1.3 billion, marking the highest first-quarter revenue in its history.
- The Global Wealth Management segment saw record asset management revenue, contributing to overall revenue growth.
- Investment banking revenues rose by 11%, driven by increases in both capital raising and advisory services.
- The company added 52 advisors during the quarter, including nine experienced advisors, enhancing its wealth management capabilities.
- Stifel Financial Corp (SF) maintained a strong balance sheet with a Tier 1 leverage capital ratio of 10.8% and a Tier 1 risk-based capital ratio of 17.6%.
Negative Points
- The company's bottom line was negatively impacted by a significant legal charge of $180 million, affecting EPS by $1.16.
- Net interest income fell short of expectations due to lower-than-expected loan growth and a decrease in net interest margin.
- Market volatility and uncertainty, particularly related to tariffs and monetary policy, have slowed investor confidence and activity in certain market segments.
- The Wealth Management segment experienced modest asset outflows and a decline in fee-based assets due to weaker equity markets.
- Fixed income underwriting revenue declined by 9% year-on-year, primarily due to lower issuance activity from corporate credit clients.
