Jefferies Financial initiated with a Buy at UBS

UBS initiated coverage of Jefferies Financial with a Buy rating and $67 price target. With the ongoing sale of its legacy, merchant banking assets and a “doubling-down” on its core banking franchise, Jefferies has structurally increased its return profile, all while heading into a capital markets environment which plays to its strengths, the analyst tells investors in a research note. The firm sees further upside to numbers as senior bankers new to the platform ramp-up, which should drive productivity growth through fiscal 2026.