Raymond James (NYSE:RJF) One of FBR's Favorites

FBR Capital (Nasdaq:FBCM) says Raymond James (NYSE:RJF) continue to be one of their "favored names," citing retail, credit, and higher interest rates as some of their catalysts.

FBR said, "We reiterate our rating and continue to view RJF as one of our favored names. RJF's earnings continue to be highly levered to better retail investor activity levels, a gradual improvement in the company's bank credit performance and associated provisioning, as well as higher interest rates, if and when that occurs. We also favor retail oriented capital market companies over more institutionally focused businesses given what we view as a more favorable revenue model under upcoming Basel III capital rules. Given that retail brokerage tends to be a relatively less capital intensive business than some of the more balance sheet driven institutional businesses, we would expect retail brokerages to be attractive targets for larger financial firms looking to augment their business models with more capital friendly revenue streams."

FBR Capital reiterates an "Outperform/Top Pick" on Raymond James, which was trading at $33.11, down $0.48, or 1.43 percent, as of 12:34 PM EST.