Jefferies dips heading into results, asset management in focus
BUZZ-Jefferies dips heading into results, asset management in focus ** Shares of Jefferies Financial Group JEF.N down 0.7% at $47.34 on Mon ahead of qtrly results due after the bell, with investors focused on performance in its asset management unit
** New York-based JEF seen posting a 6% rise yr/yr in fiscal Q3 rev to $2.2 bln and adj EPS of $1.00 vs $1.01 a yr ago, per data compiled by LSEG
** In its last report, JEF notched record investment banking rev but missed profit estimates due to weakness in asset management, a segment it has been repositioning amid exposure to bankrupt auto-parts supplier First Brands
** A recent fraud lawsuit involving a JEF-linked fund has kept a spotlight on the co's investments
** JEF's results sometimes provide investors an early read into what's ahead for larger investment banks as they get set to report results in coming weeks
** Earlier this month, Bank of America BAC.N CEO Brian Moynihan said at an industry conference he expects BAC's investment banking fees to drop by at least 10% in the qtr, while sales and trading will be flat
** JEF stock down ~24% YTD including ~10% fall in Sept. In comparison, S&P 400 Financial Services index .SPMDCDF off ~6% in 2026 and ~7.5% MTD
** Avg rating of 5 analysts covering the stock is "buy"; median PT $61
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))