Truist initiates Raymond James with 'hold'

Truist Securities initiates coverage on investment bank Raymond James Financial RJF.N with a "hold" rating.

The brokerage sets a price target of $188, implying 5.5% upside to the stock's last close.

Truist says, "While net new asset growth has accelerated recently, investor focus remains on potential margin compression as the incremental cost of growth rises".

The firm's investment banking arm offers a differentiated value proposition amongst peers, though the lower middle market focus faces near-term revenue headwinds, Truist said.

Six of 15 analysts rate the stock "strong buy" or "buy" and nine rate it "hold"; their median price target is $189.11, according to data compiled by LSEG.

As of the last close, the stock was up 10.9% year to date.