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Equity Research

Ratings and Definitions

Raymond James & Associates (U.S.) definitions 
Strong Buy (SB1)
  Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next six to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at least 15% is expected to be realized over the next 12 months.
Outperform (MO2)  Expected to appreciate and outperform the S&P 500 over the next 12-18 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, an Outperform rating is used for securities where we are comfortable with the relative safety of the dividend and expect a total return modestly exceeding the dividend yield over the next 12-18 months.
Market Perform (MP3)  Expected to perform generally in line with the S&P 500 over the next 12 months.
Underperform (MU4)  Expected to underperform the S&P 500 or its sector over the next six to 12 months and should be sold.
Suspended (S)  The rating and price target have been suspended temporarily.  This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company.  The previous rating and price target are no longer in effect for this security and should not be relied upon.

Raymond James Ltd. (Canada) definitions 
Strong Buy (SB1)
  The stock is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six months.
Outperform (MO2)  The stock is expected to appreciate and outperform the S&P/TSX Composite Index over the next twelve months.
Market Perform (MP3)  The stock is expected to perform generally in line with the S&P/TSX Composite Index over the next twelve months and is potentially a source of funds for more highly rated securities.
Underperform (MU4)  The stock is expected to underperform the S&P/TSX Composite Index or its sector over the next six to twelve months and should be sold.

Raymond James Euro Equities, SAS and Raymond James Financial International Limited rating definitions
Strong Buy (1)
  Expected to appreciate, produce a total return of at least 15%, and outperform the Stoxx 600 over the next 6 to 12 months.
Outperform (2)  Expected to appreciate and outperform the Stoxx 600 over the next 12 months.
Market Perform (3)  Expected to perform generally in line with the Stoxx 600 over the next 12 months.
Underperform (4)  Expected to underperform the Stoxx 600 or its sector over the next 6 to 12 months.
Suspended (S)  The rating and target price have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and target price are no longer in effect for this security and should not be relied upon.

In transacting in any security, investors should be aware that other securities in the Raymond James research coverage universe might carry a higher or lower rating.  Investors should feel free to contact their Financial Advisor to discuss the merits of other available investments.

Suitability Ratings (SR)
The following Suitability Ratings provide an assessment of potential risk factors for investors.  Suitability ratings are not assigned to stocks rated Underperform (Sell). 
Medium Risk – Income (M/INC) Lower to average risk equities of companies with sound financials, consistent earnings, and dividend yields above that of the S&P 500.  Many securities in this category are structured with a focus on providing a consistent dividend or return of capital.
Medium Risk – Growth (M/GRW) Lower to average risk equities of companies with sound financials, consistent earnings growth, the potential for long-term price appreciation, a potential dividend yield, and/or share repurchase program.
High Risk – Income (H/INC) Medium to higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of principal.  Securities of companies in this category may have a less predictable income stream from dividends or distributions of capital.
High Risk – Growth (H/GRW) Medium to higher risk equities of companies in fast growing and competitive industries, with less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial or legal issues, higher price volatility (beta), and potential risk of principal.
High Risk – Speculation (H/SPEC) High risk equities of companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated with success, significant financial or legal issues, or a substantial risk/loss of principal.