Oppenheimer Raises Rating on Jefferies (JEF), Citing Greater Confidence in its Long-term Strategy

Jefferies Financial Group Inc. (NYSE:JEF) is one of Warren Buffett’s 10 Stock Picks with the Strongest Upside Potential. On October 16, Oppenheimer raised the rating on Jefferies Financial Group Inc. (NYSE:JEF) from Perform to Outperform, keeping the price target at $81.

Chris Kotowski from Oppenheimer upgraded the rating following the increased confidence in the firm’s longer-term policy during its investor day. The analyst sees a specific issue with Jefferies’ First Brands exposure, but he believes it is very limited. The analyst believes that JEF shares are down due to atmospheric credit concerns, as credit managers, BDCs, and banks are under pressure.

Oppenheimer analysts remain optimistic on Jefferies as they believe that with insiders owning 35% of the stake, the company remains entrepreneurial and reflects dynamic growth. However, on October 16, BMO Capital lowered the price target on JEF from $69 to $55, keeping a Market Perform rating. Analysts at BMO see the pressure among regional banks and investor anxiety that makes it hard for them to quantify the risk.

Jefferies Financial Group Inc. (NYSE:JEF) is a full-service investment banking and capital markets firm. The company offers financial advisory, equity underwriting, and debt underwriting services.

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Disclosure: None. This article is originally published at Insider Monkey.