Stock of the Day

November 13, 2019

Jefferies Financial Group (JEF)

$44.81
-$0.10 (-0.2%)
Market Cap: $8.48B

About Jefferies Financial Group

Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.

Today's Trend

Jefferies Financial Group Inc. (NYSE: JEF) shares remain under pressure despite solid investment-banking results. The recent news is mixed: analysts see substantial upside, but investors continue to discount the stock because of weaker businesses and balance-sheet concerns.

  • JEF has a consensus analyst price target of $56.86, well above its recent trading level, indicating that Wall Street sees meaningful potential upside if earnings momentum improves. Jefferies Financial Group Stock Has Consensus Price Target of $56.86
  • Jefferies reported stronger-than-expected third-quarter results, supported by a recovery in global dealmaking, investment banking and equities trading. However, the improvement has not fully translated into investor confidence because asset-management performance remains weak and investors continue to monitor the company’s credit exposure. Jefferies Financial Group Record Banking Revenue Is Not Enough to Resolve the Valuation Discount
  • The stock’s valuation discount remains the central concern. Even with record banking revenue, investors appear unwilling to re-rate JEF until weaker asset management improves and credit-related risks become clearer. The shares have also fallen substantially over the year, reflecting skepticism about the durability of the earnings recovery.

Several other articles mention “Jefferies” as a brokerage giving opinions on Indian banks, Adani Green, CRDMO companies and Plains All American. Those reports are analyst commentary from Jefferies and are not material operating updates for Jefferies Financial Group (JEF).

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