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. If this kind of steady compounding appeals to you, it could be a good moment to see what else is out there and explore fast growing stocks with high insider ownership. 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. Looking for more investment ideas? Before you move on, lock in your next moves with focused stock ideas that match your style, so promising opportunities do not quietly pass you by. Capture potential multi-baggers early by scanning these 3627 penny stocks with strong financials for financially solid small caps that still fly under most investors' radar. Position yourself at the front of the AI wave by targeting these 24 AI penny stocks that combine innovation with scalable business models. Strengthen your search for possible mispricing by using these 910 undervalued stocks based on cash flows to filter companies trading below what their cash flows may justify. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech