- Jefferies has a reasonably sized merchant banking portfolio that raises our heads to a potential sum-of-the-parts idea.
- The investment banking and asset management businesses are in a heyday right now, and are likely to continue to produce results.
- Compared to Credit Suisse and other bulge brackets and considering the merchant banking portfolio, JEF stock appears cheap.
- We think Jefferies is a good buy in the financial sector as long as you believe that the M&A boom will continue and liquidity will be ample for another couple of years.
For further details see:
Jefferies Merchant Banking Portfolio Demonstrates Low Implied Price