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Stifel Financial (NYSE:SF) shares slipped 1.8% in Monday morning trading after Wolfe Research downgraded the financial services company to Peer Perform from Outperform “as tail risk from advisory cash repricing does not appear reflected in shares.”
Analyst Steven Chubak sees “meaningful earnings risk in the scenario advisory cash sweep is repriced,” even though Stifel (SF) may be somewhat shielded vs. peers due to its greater focus on broker assets under management and capital markets fees.
On tail risks, “if there is any indication that brokerage could come under scrutiny as well, (SF) would be impacted to a greater extent than peers,” he wrote in a note to clients.
His Peer Perform rate aligns with the SA Quant system rating and the average sell-side analyst rating, both at Hold. (SF) is up 18% so far this year, outpacing the S&P 500’s 16% climb.
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