Stifel Earnings: Maintaining Recent Strength and Still More Room for Recovery

Stifel and peer investment banks and wealth management firms have maintained their increase in revenue from weak 2023 levels, but the recovery stalled out a bit in the quarter. That said, we still believe that there’s much more room for improvement in Stifel’s investment banking business and that wealth management should continue to be a fairly steady performer. The company reported net income to common shareholders of $149 million, or $1.34 per diluted share, on $1.2 billion of net revenue. This was the company’s second highest quarterly revenue. Net revenue was up 17% from the previous year with broad increases in trading, investment banking, and investment management revenue. However, net revenue was only up 1% sequentially. We don’t anticipate making a material change to our $86 fair value estimate for no-moat-rated Stifel and assess shares are slightly overvalued.