Stifel Lowered Its Revenue Outlook to Flat With 2021; Shares Undervalued

Stifel Financial lowered its revenue outlook for 2022 to plus or minus 5% compared with 2021, which is still fairly good compared with most investment banks and wealth management firms. The company reported net income to common shareholders of $151 million, or $1.29 per diluted share, on $1.1 billion of net revenue. Net revenue declined 3.9% from the previous year, as a 21% decline in its institutional segment revenue to $411 million more than offset 9% growth in its wealth management business to $698 million. We don’t anticipate making a material change to our $86 fair value estimate for no-moat Stifel Financial and assess shares are moderately undervalued.