Altruist’s AI Tax Platform Jars Raymond James Shares

Raymond James Financial (RJF) shares fell 9% after competitor Altruist launched Hazel, an AI driven tax planning platform, even as Raymond James reported record quarterly revenue and client assets, along with several capital return actions.

The recent 9% single-day share price drop sits against a 30-day share price decline of 6.5% and a 1-year total shareholder return of 16.5%, suggesting shorter-term momentum is fading while longer-term holders have still done well.

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With Raymond James shares down over the past quarter yet trading at a reported intrinsic discount of about 43%, you have to ask: is this a genuine entry point, or is the market already baking in future growth?

Most Popular Narrative: 22.2% Undervalued

With Raymond James Financial last closing at $142.20 against a widely followed fair value of $182.75, the current price sits well below that narrative anchor, which leans heavily on earnings power and capital returns.

Consistent share repurchases, underpinned by strong capital and liquidity positions, indicate a commitment to enhancing shareholder value through EPS growth, alongside maintaining capacity for acquisitions that align with cultural and financial goals. The strategic focus on providing comprehensive private investment alternatives to high net worth clients through a robust platform is poised to attract more high value clients, potentially increasing fee based revenues and strengthening long term revenue streams.

Curious how advisor recruitment, fee based revenue, AI adoption and buybacks are stitched together into one valuation story? The earnings path, margin profile and future P/E assumption behind that $182.75 figure are where the real debate starts. The full narrative lays out those moving parts in detail, including how cash flows are discounted at 8.18% and what that implies for long term returns.

Result: Fair Value of $182.75 (UNDERVALUED)

However, this narrative can unravel if market and interest rate swings hit banking and capital markets revenue, or if heavy AI and tech spending weighs on margins.

Next Steps

With both risks and rewards on the table, do you feel the balance of this story leans too positive or too cautious? Are you ready to move quickly and decide for yourself using the 5 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.