Piper Sandler Q2 revenue beats on increased M&A activity advisory

Overview

• U.S. investment bank's Q2 revenue rose 25% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 rose 41% yr/yr

• Record advisory revenue driven by increased M&A activity and private capital advisory

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• ADVISORY SERVICES - Record Q2 advisory revenue driven by increased M&A activity and strong private capital advisory performance

• MUNICIPAL FINANCING - Municipal financing revenues reached highest level since 2021, led by special district and hospitality groups

• EQUITY BROKERAGE - Equity brokerage delivered one of its best quarters, benefiting from broad platform capabilities and market opportunities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Piper Sandler Companies is $88.75, about 20.2% above its July 29 closing price of $73.82

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)