Stifel Financial: Increasing Our Fair Value by 12%; Capital Markets Upturn Should Boost Earnings

We are increasing our fair value estimate for no-moat-rated Stifel Financial to $81 per share from $72. This implies an adjusted forward price/earnings multiple of about 11 times and a price/book ratio of 1.8 times. Of the net $9 increase in our fair value estimate, about half is due to earnings since our previous valuation update and half is due to miscellaneous adjustments, such as incorporating higher client asset levels after the appreciation of the stock market.