Wealth Management and Banking to Add Relative Stability to Stifel's Results

Stifel’s relatively large wealth management business, net interest income, and acquisitions should contribute to relatively stable results for the firm. The company reported net income to common shareholders of $164 million, or $1.39 per diluted share, on $1.12 billion of net revenue for the first quarter of 2022. Net revenue declined 1.6% from the previous year, as a 23% increase in asset management revenue to $342 million wasn’t enough to offset revenue declines in other lines, such as investment banking that declined 25% to $255 million. We don't anticipate making a material change to our $86 fair value estimate for no-moat Stifel and assess shares are moderately undervalued.