JMP Securities LLC analyst Devin Ryan upgraded Raymond James Financial Inc.'s rating to "market outperform" from "market perform."

The analyst set the company's price target at $110.

Ryan wrote that the company's current valuation does not accurately reflect its growth potential. He sees no sign of Raymond James' organic growth slowing, especially within its private client business. A portion of the company's excess capital, he wrote, could also be used for an acquisition within the next couple of years.

Additionally, Ryan views the company's costly recruiting efforts as a good investment that will drive its long-run value.