In a report released today, Michael Grondahl from Northland Securities assigned a Buy rating to Piper Jaffray Companies (PJC), with a price target of $89. The company’s shares opened today at $73.25.
Grondahl observed:
“We are initiating coverage on Piper Jaffray (PJC) with an Outperform rating and $89 price target. We believe Piper’s consistent multi-year progress with its Advisory business deserves a higher multiple. The strength in Advisory for Piper has been built over numerous years via acquisitions and selected hires, and represents ~50% of revenues the last 2 years. Key Points We believe this can increase to 60%-65% over time. The Advisory success has also helped Piper improve ROE from ~8% to the ~13-14% range via a more capital-light model with much better cash flows. Finance businesses are solid and Institutional Brokerage (Equity and Fixed Income) is a bit more challenged but clearly supportive. As Piper consistently adds MDs (via acquisitions and selected hires), $750M of investment banking revenues (and $1B of total revenues) is on the horizon.”
According to TipRanks.com, Grondahl is a top 100 analyst with an average return of 30.2% and a 67.7% success rate. Grondahl covers the Financial sector, focusing on stocks such as Front Yard Residential Corporation, Altisource Portfolio Solutions SA, and Health Insurance Innovations.
Piper Jaffray Companies has an analyst consensus of Moderate Buy, with a price target consensus of $89.
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Piper Jaffray Companies’ market cap is currently $949.1M and has a P/E ratio of 20.58. The company has a Price to Book ratio of 1.40.
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Piper Jaffray Cos. is an investment bank and asset management firm, which engages in the provision of equity and debt capital markets products; public finance services; financial advisory services; equity research and institutional brokerage; fixed income institutional brokerage; and asset management services.
