01:55 PM EDT, 09/13/2024 (MT Newswires) -- Jefferies Financial Group ( JEF ) has shown consistent share gains in the investment banking industry, though expected increases in mergers and acquisitions, initial public offerings, and equity underwriting have yet to materialize as investment banking activity remains "cyclically low," Oppenheimer said in a note Friday.

A significant increase in debt refinancings, particularly in investment-grade and high-yield issuances, has helped offset slower growth in IPOs and equity underwriting, Oppenheimer said.

The investment firm said it expects Jefferies' trading results to increase 5% year over year, down from its previous estimate of 10% growth, based on commentary at an industry conference suggesting results ranging from a 2% increase to a 10% decline, according to the note.

Dealogic data showed Jefferies' investment banking revenue to increase by nearly 74% in fiscal Q3, suggesting a 64% growth in reported results when "typical tracking error" is accounted for, Oppenheimer said.

Oppenheimer maintained an outperform rating on Jefferies' stock while raising the price target to $66 from $64.

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