Analyst Note| Michael Wong, CFA, CPA |
Stifel Financial reported record first-quarter net revenue, as wealth management has continued its steady growth and the institutional group benefited from abnormally high investment banking and trading volume. The company reported net income to common shareholders of $165 million, or $1.40 per diluted share, on $1.13 billion of net revenue. Trading revenue in the quarter was about 32% greater, and investment banking revenue was 64% greater than their respective, trailing three-year quarterly average. We don’t anticipate making a material change to our $52 fair value estimate for no-moat Stifel Financial.