Sandler O’Neill, the US investment banking and advisory firm, has issued a bullish forecast on the share price prospects of US-based financial advisory franchise company Raymond James Financial. The firm said it was initiating coverage of Raymond James Financial with a “buy” rating and a $34 price target.

“Raymond James has been bucking the trend in the financial-services sector, as results have remained resilient despite an extremely challenging environment,” Sandler O’Neill said in a note, according to a report by Barron’s.

"In addition to compelling demographics, future growth will be driven by its ability to recruit and train new financial advisors (FAs) successfully and increase FA productivity," it said.

“We believe Raymond James is a compelling stock for investors who are looking for a conservatively managed business and a highly recurring revenue-based model, at a time when many of the company's peers are on less-sound footing,” it added.