
JEF Stock Forecast & Price Target
JEF Analyst Ratings
Bulls say
Jefferies Financial Group Inc. has demonstrated significant growth, evidenced by a 74% year-over-year increase in reported Dealogic numbers, which translates to an anticipated 64% rise in reported results. The firm has successfully gained market share in both its investment banking and trading sectors over the past two decades without proportional growth in its balance sheet or associated risks, positioning itself favorably within the competitive landscape. Additionally, as Jefferies continues to streamline its business by divesting non-core assets from its 2013 merger, it is expected to generate capital for share buybacks and achieve a higher valuation multiple on its core financial services operations.
Bears say
Jefferies Financial Group Inc. is experiencing a year-over-year revenue decline of approximately 4%, primarily driven by a nearly 10% drop in fixed income, commodities, and currencies (FICC) performance due to challenges in monetizing client flows in a difficult market environment. Furthermore, the company's investment banking segment continues to face cyclical low activity, with IPOs down 7% year-over-year and total equity underwriting at only about half of 2021 levels, indicating a significant decline in market engagement. Additionally, inherent risks associated with holding trading inventories on the balance sheet expose the firm to potential markdowns and realized losses, particularly during periods of market stress, further exacerbating the negative outlook.
This aggregate rating is based on analysts' research of Jefferies Financial Group Inc and is not a guaranteed prediction by Public.com or investment advice.
JEF Analyst Forecast & Price Prediction
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