Jefferies Weighed Down by Credit, Legal Risks -- Market Talk

Dow Jones
03/09

1131 GMT - Jefferies Financial Group says it is the victim of two alleged fraud cases when it comes to ties to Market Financial Solutions and Western Alliance. The investment bank denies any wrongdoing. "However, we acknowledge that the market is concerned about additional potential credit risk at Jefferies and future potential fallout from the two known incidents, including potential legal and reputational risk," Morgan Stanley analysts say in a research note. These concerns could weigh on the stock, overshadowing a strong business environment and the company's expected revenue and earnings improvement. Morgan Stanley downgrades Jefferies to equal-weight from overweight and cuts its price target to $49 from $78. Shares are down 4% premarket. (connor.hart@wsj.com)

 

(END) Dow Jones Newswires

March 09, 2026 07:31 ET (11:31 GMT)

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