NEW YORK (AP) -- Shares in Stifel Financial Corp. sank Tuesday, a day after the brokerage firm reported its quarterly results. The stock was down nearly 7 percent in afternoon trading.
The St. Louis-based company posted net income of nearly $40 million, or 63 cents per share, in the final quarter of 2012. That beat analysts' earnings estimates by two cents, according to FactSet.
But an analyst at Susquehanna Financial Group lowered his estimate for Stifel Financial Tuesday morning. Doug Sipkin cut his earnings estimate for the current year to $2 per share, down from $2.27. Sipkin said Stifel Financial's net revenues fell below his estimates.
The analyst also said that Stifel shares looked pricey ahead of Tuesday trading. His price target for the stock is $33. He doubts Stifel's merger with KBW will continue to benefit the company.
On Feb. 15 Stifel completed its acquisition of investment bank KBW in a cash-and-stock deal valued at over $575 million when it was announced in November. The transaction created a middle-market investment bank focused on the financial services industry.
Stifel Financial shares fell $2.53, or 6.7 percent, to $35.08.