Raymond James Financial upgraded to strong buy on growth, earnings, and valuation.

Raymond James Financial (RJF) has been upgraded to a strong buy due to its robust growth driven by expanding advisor networks, strong net inflows, and the acquisition of Clark Capital. The company shows improving operating margins and benefits from AI-driven efficiencies, with expected earnings per share growth of 11-12% year-over-year. Despite some interest expense challenges, RJF offers a compelling dividend growth profile of 44% annually and remains undervalued with a forward price-to-earnings ratio of 13x. The price target is set at $176, implying a potential upside of 12.7%.