BUZZ - Oppenheimer says Jefferies' share price remains undervalued

October 20 - ** Analyst Chris Kotowski from Oppenheimer stated that Jefferies Financial (JEF.N) shares remain significantly undervalued and that the investment bank is expected to benefit from a revival in private equity activity.

** On Monday, Jefferies (JEF) shares (link) fell 2.7% as the company held its annual investor day; in contrast, the benchmark S&P 500 Index .SPX rose 0.4%.

** Kotowski said that Monday’s market reaction was “strange” because management more clearly hinted at an imminent positive shift in profitability.

** Kotowski pointed out that although the expansion of JEF’s investment banking business is costly, it has been effective: the bank’s merger and acquisition revenue for the first nine months of 2026 already exceeded that of Bank of America and Citi.

** “M&A and ECM (equity capital markets) are actually among the least capital-intensive businesses in the financial services sector,” Kotowski said, adding that companies focused on these areas should generate higher profitability over time.

** Out of five brokerages, two rated the stock as “buy” or higher and three rated it as “hold”; the median price target is $52 — LSEG data.

** As of the close of the previous trading day, JEF shares had declined 29.6% so far this year.

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