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Research Alert: CFRA Upholds Buy Rating On Shares Of Jefferies Financial Group Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target price by $8 to $58 on a P/E of 12.9x our FY 27 (Nov.) EPS view, a discount to JEF's three-year forward P/E average of 19.8x but more closely aligned with the peer average of 12.3x. We keep our FY 26 EPS estimate at $3.50 and increase FY 27's to $4.51 from $4.38 on respective revenue projections of $8.25B (+12%) and $9.24B (+12%). Shares of JEF have recovered ~25% since Feb-Q earnings (late March), as we think investors have gained confidence that the firm's core investment banking momentum remains intact. Despite this recovery, the stock remains down nearly 20% YTD and continues to trade at a compressed forward P/E multiple of ~14x, suggesting the market has not fully re-rated the shares to reflect operational strength. While we believe JEF's competitive positioning and market share gains support a higher valuation, we note that the current Treasury yield environment could present headwinds to deal activity and client risk appetite if sustained. We view the current valuation as attractive.

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