Oppenheimer & Co. downgraded Jefferies Financial Group Inc. on March 19, 2025, citing concerns about a potential delay or cancellation of the anticipated boom in M&A activity. The brokerage firm also highlighted worries stemming from tariffs as a threat to dealmaking. This assessment reflects a broader caution among Wall Street analysts regarding the market environment.
Oppenheimer stated it no longer expects growth in U.S. investment banking revenue for the year, slashing its earlier estimate of a 32% jump. This revised outlook directly impacts firms like Jefferies, which rely heavily on investment banking activity. The downgrade underscores the sensitivity of Jefferies' business to macroeconomic and geopolitical factors.
The analyst's view points to growing uncertainties around U.S. policy and geopolitical events, which could dampen expectations for a broader rebound in dealmaking. For Jefferies, whose core business includes M&A advisory and underwriting, these market headwinds are a material consideration for investors.
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