Jefferies Financial Group's (JEF) presentation during its recent investor day is "compelling" and inspires confidence in the company's long-term trajectory, Oppenheimer said in a Friday note.

Despite a partial recovery in mergers-and-acquisitions activity, the company's stock price has fallen 17.7%, compared with a 16.8% gain in the S&P 500, Oppenheimer analysts said. They said that the exposure of the company to the First Brands issue is "in reality very limited," adding that they believe the stock is down due to "atmospheric" credit concerns that are impacting credit managers, business development companies, and many banks.

Jefferies' main exposure to First Brands was a $113 million equity investment in Point Bonita Capital, a division of Leucadia Asset Management, which only accounts for about 4.5% of the company's revenues year-to-date, according to the note.

Company insiders own 35% of the company's shares, influencing an entrepreneurial mindset amid "very dynamic growth," the analysts said. The executives stated that the company is now an "execution and realization" mode after a long period of outsized investment, which should result in an increase in net margins, according to the note.

The analysts said they are not revising its current valuation estimates and historic valuation approach to Jefferies, but noted that the recent pullback in stock price has made it "a compelling value."

Oppenheimer upgraded the company's stock rating to outperform from perform and kept the price target at $81.

Price: 52.08, Change: +3.28, Percent Change: +6.71