Jefferies Financial Group (JEF) posted solid Q2 fundamentals but fell short of the raised bar, including UBS' Street-high estimates, UBS Securities said Wednesday in a note.

The note said Advisory, Debt Capital Markets, and Fixed Income, Currencies, and Commodities all missed, with Debt Capital Markets delivering the "biggest" disappointment.

Still, the report said equities trading was the standout, clearing a high bar. It also said merchant bank, buybacks, and tax rate were other bright spots.

"Given the stock's QTD outperformance, we expect shares to underperform peers tomorrow," the note said. UBS cut its price target to $65 from $67 while keeping its neutral rating.

Price: 52.42, Change: -5.52, Percent Change: -9.53