Jefferies Financial Group (NYSE:JEF) reported third-quarter EPS of $1.08, above the $1.00 consensus, as investment banking revenue rose 17% to $1.33 billion and equities trading hit a record. However, asset management net revenue fell to $85.6 million from $176.9 million, weighed by weaker investment returns, including exposure tied to the troubled First Brands business. Shares are down about 30% year-to-date, and Oppenheimer, Goldman Sachs and BMO all cut price targets while keeping their ratings. At roughly 10–11 times projected earnings, the article argues the valuation hinges on whether the cyclical banking business can deliver more consistent earnings.
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