Raymond James stock price target raised to $170 from $167 at KBW

Raymond James (RJF) reported fiscal Q3 2025 adjusted EPS of $2.18, missing consensus estimates primarily due to a one-time $58 million legal charge, yet revenue of $3.4 billion surpassed projections. Despite the headline earnings miss, analysts from KBW and Citi raised their price targets to $170, while JMP reiterated a Market Outperform rating with a $180 target, reflecting an underlying positive assessment of the company's revenue performance and the non-recurring nature of the charge. This suggests analysts are largely looking through the one-off impact, with some viewing the stock as undervalued.

Analysis

Raymond James (RJF) reported a mixed fiscal third quarter, with adjusted EPS of $2.18 missing the consensus estimate of $2.36. This earnings shortfall was primarily attributable to a one-time, non-recurring $58 million legal charge related to a bond underwriting settlement, which impacted EPS by an estimated $0.21 to $0.29. Excluding this charge, the company's adjusted pre-tax earnings of $640 million would have surpassed KBW's estimate of $625 million, though still falling slightly short of the $653 million consensus. Importantly, top-line performance was a clear positive, with revenue of $3.4 billion exceeding projections of $3.37 billion, driven by stronger-than-expected brokerage revenues in the Private Client Group and improved results from the Capital Markets division. The market appears to be looking through the one-off expense, as evidenced by positive analyst actions: KBW and Citi both raised their price targets to $170, while JMP Securities reiterated a Market Outperform rating with a $180 target, suggesting confidence in the firm's fundamental operating strength.

Key Decisions for Investors

• Investors should look past the headline EPS miss, as it was driven by a one-time legal charge, and instead focus on the underlying revenue beat which indicates solid operational health.
• The positive price target revisions from multiple analysts, including KBW, Citi, and JMP, signal that the professional community views the earnings noise as non-recurring and maintains confidence in the company's forward outlook.
• Given that revenue performance was strong and nine analysts have revised earnings estimates upward, the stock may present a value opportunity, especially as the one-time legal costs are now in the rearview mirror.