Raymond James (RJF): Assessing Valuation After New $692 Million Bank Midwest Wealth Partnership

Bank Midwest Partnership Puts Raymond James in Focus

Raymond James Financial (RJF) just deepened its regional footprint through a new partnership with Bank Midwest, which is moving about $692 million in client assets and rebranding its wealth arm on Raymond James infrastructure.

See our latest analysis for Raymond James Financial.

That backdrop helps explain why investors have been comfortable paying around $163.01 today, with a modestly positive year to date share price return alongside a much stronger five year total shareholder return. This suggests that momentum has been built steadily rather than in quick bursts.

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With revenue and earnings still growing at a healthy clip and the shares trading at a discount to both analyst targets and some intrinsic value estimates, is Raymond James quietly undervalued, or is the market already pricing in years of expansion?

Most Popular Narrative Narrative: 11.1% Undervalued

With Raymond James Financial last closing at $163.01 against an implied fair value near $183, the most followed narrative sees a meaningful valuation gap emerging.

The establishment of a Chief AI Officer role highlights Raymond James' investment in artificial intelligence to enhance financial professional capabilities and client service, potentially improving net margins through increased operational efficiencies.

The bank segment's strong loan growth, particularly in securities based lending, coupled with high credit quality, suggests potential increases in net interest income and margins, contributing positively to future earnings.

Read the complete narrative.

Want to see how steady revenue expansion, rising margins and shrinking share count are combined into one valuation story? The narrative reveals the full earnings math behind that fair value call.

Result: Fair Value of $183.27 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, market volatility or softer capital markets activity could derail advisor momentum, slow asset growth, and challenge those earnings and valuation assumptions.

Find out about the key risks to this Raymond James Financial narrative.

Build Your Own Raymond James Financial Narrative

If you see the story differently, or want to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.

A great starting point for your Raymond James Financial research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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