SF - Raymond James Stifel upgraded by Wells Fargo on improved macro backdrop

Wells Fargo analyst Christopher Harris upgrades Raymond James Financial (RJF) to Overweight from Underweight and Stifel Financial (SF) to Equal Weight from Underweight, reflecting an improved macro backdrop developing for financials.That includes higher interest rates, benign credit losses, and a broader rotation into value stocks. Also, his view that the recession would lead to a much more difficult operating environment for these companies didn't materialize.Views both RJF and SF as "solid, well-run companies with each having diverse businesses that are taking market share."Prefers RJF because its stock has lagged vs. SF and the S&P 500 since the end of 2018, mix is skewed more toward fees and private client unit, it appears to have stronger organic growth, and it has more leverage to the steepening yield curve.Earlier this month, Wolfe also upgraded Raymond James as part of its 2021 outlook for financials.RJF still lags the S&P 500 while SF has

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Raymond James, Stifel upgraded by Wells Fargo on improved macro backdrop