Raymond James (RJF) PT Lowered to $125 at Citi

Citi analyst Chris Allen lowered the price target on Raymond James (NYSE: RJF) to $125.00 (from $132.00) while maintaining a Neutral rating.

The analyst comments "RJF reported adj. EPS of $2.39 (vs our est/consensus of $2.29/2.31), with the beat driven by a bank loan credit benefit. Net revenue came in lower than expected ($3.23B vs our est. of $3.25B). Comp was relatively in-line, while adj. non-comp expenses were $494M (vs our est. of $515M). Overall, it was a mixed quarter with lower brokerage/investment banking revenue and combined NII and RJ third party fees given decline on 3rd party bank yields. With regard to sweep deposit rates, given commentary from mgmt. on call, we believe RJF is well positioned to deal with the current competitive dynamics given their current offering, which we discuss below. While we continue to like the LT story, we are trimming estimates here to reflect current trends and lower expectations for NII/3rd party bank deposit revenues. Given the potential for lower estimates, we could see the stock under pressure in the near-term."

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