10:25 AM EDT, 04/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $4 to $91 on a forward P/E of 13.5x our 2024 EPS estimate, a premium to SF's 10-year average multiple of 12.5x. We believe SF is well positioned to maintain strong net interest income (NII) results given likely higher for longer rates and a recovery in capital market activity that should boost the Institutional Group (IG). We keep our 2024 EPS estimate at $6.73 and raise 2025's by $0.09 to $7.77. SF reported Q1 2024 adj. EPS of $1.49 vs. $1.40, a $0.06 consensus beat on revenues that rose 5% Y/Y. Revenue growth was driven by Global Wealth Management (+4% Y/Y) and IG (+6% Y/Y), partially offset by a 16% Y/Y decline in NII at SF Bank. Consolidated NII was pressured by net interest margins (NIMs) that dropped to 2.99% versus 3.57% Y/Y and 3.24% Q/Q, a larger contraction than we expected. However, we expect NIM pressure to ease from here as cash sorting headwinds fade and deposit growth likely returns. Investment banking results should accelerate into 2H 2024, after rising just 1% Y/Y.