RJF - Raymond James Financial: Strong Financial Position Notwithstanding Some Challenges
- Raymond James Financial's net income fell by -21% YoY in 4Q FY 2020, which was mainly attributable to lower interest rates and higher loan loss provisions.
- It is getting more difficult to recruit financial advisors for the private wealth management business, with competitors more willing to offer higher compensation to attract financial advisors from other firms.
- Higher-than-expected share buybacks and value-accretive M&A deals backed by the company's strong financial position are potential re-rating catalysts for the stock.
- Raymond James Financial trades at 1.98 times P/B and 14.9 times consensus forward FY 2021 P/E, and the stock offers a consensus forward FY 2021 dividend yield of 1.5%.
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Raymond James Financial: Strong Financial Position Notwithstanding Some Challenges