Factors contributing to this outlook include sensitivity to short-term interest rates, emerging net new asset (NNA) challenges, and shifts within the company's operational structure. Additionally, the firm may face increased compensation expenses and has less exposure to capital markets activities, which could affect its growth prospects. Wolfe Research's updated valuation suggests a modest 12% potential upside for Raymond James' shares, which underpins the decision to downgrade the stock to Peer Perform. This new rating reflects a more cautious expectation of the company's stock performance relative to the broader market and its industry peers. The downgrade is a significant change in the firm's view of Raymond James' stock, following a strong rally after the previous upgrade and a 3:2 stock split that occurred on September 21.