Piper Jaffray Upped to Strong Buy


On May 3, Zacks Investment Research upgraded Piper Jaffray Companies (PJC) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The uptick in the rank of this Minnesota-based investment brokerage firm was driven by strong estimate revisions on the back of impressive first-quarter 2014 results. Notably, with this, the company has delivered positive earnings surprises in 3 of the trailing 4 quarters with an average beat of 41.2%.

On Apr 24, Piper Jaffray released its first-quarter 2014 results. Adjusted net income from continuing operations came in at $1.24, outpacing the Zacks Consensus Estimate by 36.3%. Results benefited from top-line growth, partially offset by higher operating expenses.

Adjusted net income increased 68.7% to $20.0 million, while adjusted net revenues stood at $161.5 million, up 51.3% year over year. However, total non-interest expenses increased 48.2% year over year.

Piper Jaffray operates in two segments – Capital Markets and Asset Management. Notably, both the segment reflected year-over-year growth in net revenues. Driven by net inflows and market appreciation, assets under management nudged up 12.7% year over year to $11.5 billion.

The Zacks Consensus Estimate for 2014 advanced 25.7% to $3.59 per share over the past 30 days. Also, for 2015, it moved north 13.0% to $3.64 per share.

Other Stocks to Consider

Other stocks in this space worth considering include E*TRADE Financial Corp. (ETFC), Interactive Brokers Group, Inc. (IBKR) and Investment Technology Group Inc. (ITG). All three stocks hold the same rank as Piper Jaffray.

Read the Full Research Report on PJC
Read the Full Research Report on ETFC
Read the Full Research Report on IBKR
Read the Full Research Report on ITG

Zacks Investment Research

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