Jefferies Financial Group Faces Legal Scrutiny Over Bankruptcy Exposure
Written by Emily J. Thompson, Senior Investment Analyst
Source: Globenewswire
Updated: 4 day ago0mins
- Legal Investigation Initiated: Jefferies Financial Group and its trade finance arm, Point Bonita Capital, are under investigation for potential violations of federal securities laws related to the bankruptcy of First Brands Group, indicating a significant increase in legal risks for the company.
- Substantial Financial Exposure: Jefferies and Point Bonita reported approximately $715 million in exposure to First Brands' receivables, representing about 25% of Point Bonita's trade finance portfolio, which could have profound implications for the company's financial stability.
- Stock Price Volatility: On October 8, 2025, Jefferies' stock price fell by $4.66, or about 8%, from $59.10 to $54.44 following the news, reflecting market concerns regarding its financial health.
- Investor Redemption Requests: As the SEC investigation deepens, there has been an increase in redemption requests from investors in Point Bonita, indicating a weakening market confidence in its future, which may lead to liquidity issues.
JEF.N
$0.0000%Past 6 months
Line
|
Candle
1D
5D
1M
3M
6M
YTD
1Y
5Y
No Data
Powered By
Intellectia
Analyst Views on JEF
Wall Street analysts forecast JEF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JEF is 71.00 USD with a low forecast of 55.00 USD and a high forecast of 81.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 58.820
Low
55.00
Averages
71.00
High
81.00
Current: 58.820
Low
55.00
Averages
71.00
High
81.00
Oppenheimer
Chris Kotowski
Perform
to
Outperform
upgrade
$81
2025-10-17
Reason
Oppenheimer
Chris Kotowski
Price Target
$81
2025-10-17
upgrade
Perform
to
Outperform
Reason
Oppenheimer analyst Chris Kotowski upgraded Jefferies Financial to Outperform from Perform with an $81 price target.
BMO Capital
Market Perform
downgrade
$69 -> $55
2025-10-17
Reason
BMO Capital
Price Target
$69 -> $55
2025-10-17
downgrade
Market Perform
Reason
BMO Capital lowered the firm's price target on Jefferies Financial to $55 from $69 and keeps a Market Perform rating on the shares. The stock was under pressure yesterday on combination of further credit headlines from regional banks and investor anxiety from its Investor Day, the analyst tells investors in a research note. BMO adds that while shares have pulled back dramatically, the risk remains "hard to quantify".
Opco
Oppenheimer
Perform
to
Outperform
upgrade
$81
2025-10-17
Reason
Opco
Oppenheimer
Price Target
$81
2025-10-17
upgrade
Perform
to
Outperform
Reason
Oppenheimer upgraded Jefferies Financial to Outperform from Perform with an $81 price target. The firm says Jefferies' investor day brought increased confidence in its longer-term trajectory. The company has a "specific issue" with its First Brands exposure, but this is "very limited," the analyst tells investors in a research note. The stock is down on "atmospheric" credit concerns which are "dubious," contends Opco. It views Jefferies as "entrepreneurial" with insiders owning 35%, and sees the company's growth as "very dynamic."
Morgan Stanley
Equal Weight
maintain
$72 -> $74
2025-09-30
Reason
Morgan Stanley
Price Target
$72 -> $74
2025-09-30
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Jefferies Financial to $74 from $72 and keeps an Equal Weight rating on the shares. Following the company's fiscal Q3 report, bulls can point to record Advisory revenue and management sounding increasingly optimistic, while bears can point to a lack of comp leverage despite greater than 20% year-over-year top line growth, the analyst says. The firm expects "a choppy stock reaction given the relatively heightened expectations into the print," the analyst added.
See All Ratings
About JEF
Jefferies Financial Group Inc. is a global, full-service investment banking and capital markets company. The Company provides financial advisory, equity underwriting and debt underwriting services. Its business segments include Investment Banking and Capital Markets and Asset Management. The Investment Banking and Capital Markets segment includes its securities, commodities, futures, and foreign exchange capital markets activities and its investment banking business, which provides underwriting and financial advisory services to clients across various industry sectors in the Americas, Europe and the Middle East, and Asia-Pacific. The Asset Management segment provides alternative investment management services to investors in the United States and overseas and generates investment income from capital invested in and managed by the Company or its affiliated asset managers. It provides mergers and acquisition, debt advisory and restructuring and private capital advisory services.
About the author
Preview
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sigh Up to Get Intellectia Insights
What are the key concerns raised by the SEC investigation into Jefferies?
How does Jefferies' exposure to First Brands impact its financial stability?
How might the SEC investigation affect Jefferies' stock performance in the future?
Will investor confidence in Jefferies recover after the SEC investigation concludes?