Analysts Adjust Ratings for Jefferies Financial Group

Analysts have varied opinions on Jefferies Financial Group, showcasing recent shifts in ratings. The average price target increased to $83.5, later discussed in detail in this analysis.

Date: 04-01-2025

AI Rating: 6

Analyst Ratings Overview: Jefferies Financial Group has garnered diverse analyst ratings, with 4 analysts providing insights in recent months. The ratings indicate a predominantly somewhat bullish sentiment, with 4 analysts rating the stock as somewhat bullish. Notably, in the last month, there was 1 somewhat bullish rating against no bullish or bearish ratings.

Price Target Movement: Recently, Jefferies Financial’s average price target increased by 13.99% from the previous average of $73.25 to $83.5. This increase reflects rising expectations from analysts about the company’s stock performance in the coming year.

Company Fundamentals: A significant detail is the positive revenue growth rate of 27.18% as of August 31, 2024. This figure indicates a strong upward trend in the company's earnings and reflects better performance compared to its peers in the Financials sector.

However, areas of concern include Jefferies Financial's net margin at 6.44%, which is below industry standards, suggesting operational efficiency issues. Also, the return on equity (ROE) is at 1.68%, highlighting potential difficulties in using equity capital effectively.

Furthermore, the company's return on assets (ROA) is below industry averages at 0.26%, indicating challenges in asset utilization for generating returns. Despite these issues, the company maintains a relatively low debt-to-equity ratio of 2.14, which reflects a cautious approach to financing and may be seen positively by investors. In conclusion, while Jefferies Financial Group demonstrates robust revenue growth, investors should remain cautious of profitability metrics that may impact future stock price movements.

Stocks: JEF