Stifel Earnings: Wealth Management at New Highs, Institutional Securities Might Be at Low for Cycle

Stifel Financial’s wealth management segment made a new high in quarterly net revenue, while the institutional securities business is at the lowest level since 2019. The company reported net income to common shareholders of $125 million, or $1.10 per diluted share, on $1.05 billion of net revenue. Net revenue was 5% lower than both the previous year and quarter. Wealth management segment revenue of $758 million that was 9% higher than a year ago due to net interest income bolstered results, as institutional securities segment revenue of $276 million was 33% lower. We don’t anticipate making a material change to our $81 fair value estimate for no-moat-rated Stifel and assess shares are moderately undervalued.