Raymond James (RJF) Stock Forecast & Price Target

Raymond James Financial has demonstrated solid growth in its sweep cash balances, with a reported increase of approximately 2.7% month-over-month in June and a notable rise of around 4.9% in September, contributing to a total of $42.9 billion in domestic cash sweep balances. Additionally, the firm has experienced a record expansion in its advisor recruiting pipeline, resulting in a 2% growth in financial advisor headcount during fiscal year 2025, alongside a 21% increase in trailing production, which is indicative of strengthened performance. Lastly, there has been a general uptick in customer cash balances and engagement with annuity products, suggesting a positive trend in investment activities ahead of anticipated lower interest rates.

Raymond James Financial has reported a decline in cash balances in October and July, aligning with its quarterly fee billings of approximately $1.8 billion and $1.7 billion, respectively. The company's fiscal third quarter of 2025 saw GAAP EPS of $2.12 and adjusted EPS of $2.18, both falling short of estimates by $0.08 and trailing consensus forecasts, which raises concerns about revenue generation capabilities. Additionally, the firm faces multiple risk factors including a stagnant interest rate environment, deteriorating economic conditions, and potential fee compression, all of which could negatively impact its future performance and growth.