Goldman Sachs Maintains Neutral Rating on Raymond James (NYSE:RJF) Shares with $127.00 Price Target
Goldman Sachs has kept a Neutral rating on Raymond James (NYSE:RJF) shares, setting a steady stock price target of $127.00. The firm highlighted Raymond James' 1.9% month-over-month increase in total client assets, showing a 15% growth year-over-year. This growth was fueled by improved equity markets and strong recruiting trends.
Total client assets at Raymond James saw a positive trend, with cash balances, including Enhanced Savings Program (ESP) balances, reaching $56.0 billion. This figure exceeded management's previous projection from the last earnings call by approximately 1.5%.
Although there was a slight month-over-month decrease in Client Cash Sweep plus ESP balances, attributed to standard fee billing at the start of the quarter, new net assets helped offset this decline. Goldman Sachs estimated an annualized organic net new asset growth rate of 5.8% for Raymond James, consistent with the firm's long-term average.
Raymond James also saw improved results in investment banking, surpassing initial expectations in deal closings and activity levels. Despite these positive trends, Goldman Sachs maintained a Neutral stance on the stock with an unchanged price target.
In conclusion, Raymond James' performance in July exceeded expectations, particularly in client asset growth and investment banking activity. Investors should keep an eye on these positive trends as they may impact the company's stock price in the future.
Analysis:
- Goldman Sachs has maintained a Neutral rating on Raymond James shares.
- Raymond James reported a 1.9% month-over-month increase in total client assets.
- Total client assets reached $56.0 billion, exceeding management's projections.
- Investment banking results showed improvement, surpassing initial expectations.
- Despite positive trends, Goldman Sachs kept a Neutral stance on the stock.