Raymond James Earnings: Continued Net Inflows Amid Negative Market Sentiment; Heightened Buybacks

Narrow-moat-rated Raymond James Financial reported decent fiscal second-quarter results, highlighted by continued net new client assets despite declining market sentiment. The company reported net income to common shareholders of $493 million, or $2.36 per diluted share, on $3.4 billion of net revenue. Net revenue sequentially declined 4%, driven chiefly by investment banking weakness as heightened economic uncertainty pared deal activity. Upon incorporating these results, we view shares as modestly undervalued following the recent selloff alongside broader equity markets and will maintain our $147 fair value estimate.