Citi analyst William Katz downgraded Raymond James (RJF) to Sell from Neutral with a price target of $71, down from $93. Katz, who also downgraded LPL Financial (LPLA) to Neutral from Buy, has lowered his FY20-22 EPS estimates and reduced his target multiples for retail broker dealers following the rates reset that compresses their earnings power and reignites the "lower for longer" risks for the sector, Katz tells investors. Given that the sector is tightly correlated to short and long-term rates and spreads, and that Citi analysts are calling for potentially another 75 basis points of rate cuts, he thinks it is too soon to step in, Katz said. He additionally cut his price target on Charles Schwab (SCHW) shares to $40 from $49.50 and lowered his price target for TD Ameritrade (AMTD) to $43 from $53.50.

TD Cowen lowered the firm's price target on Raymond James to $126 from $131 and keeps a Hold rating on the shares. The firm sees favorable intermediate earnings drivers for the company including accelerating IEA growth, capital markets upturn, and excess capital deployment; though such incremental growth is likely to come from lower start point.

Reports Q2 revenue $3.12B, consensus $3.14B. Reports record client assets under administration of $1.45T. "We generated record quarterly net revenues of $3.12 billion in the fiscal second quarter fueled by robust year-over-year growth in client assets under administration of 18%, reflecting market growth and solid financial advisor retention and recruiting in the Private Client Group," said Chair and CEO Paul Reilly. "Entering the back half of the fiscal year, we are well positioned with record client assets and ample capital to support business growth."