Buy - Price: $36 on July 15
by Sterne Agee

We reiterate our Buy rating and $36 price target. Piper Jaffray reported a respectable quarter, considering the capital markets' environment. We are reducing our 2H08 estimates 59%, to a loss of 27 cents a share, based on management guidance. They do not expect activity to pick up in 2008. We believe that capital-market activity most likely will not pick up in 2009, either. Our new annual estimates are a 37-cent-a-share loss and a 17-cent-a-share profit for 2008 and 2009, respectively. We arrived at our $36 price target by applying a 0.9 times multiple to our 2008 estimated tangible book value of $38.10.

Piper Jaffray Cos. authorized the repurchase of $100 million in shares, the investment bank said Wednesday.

Piper said the move is to offset the dilutive effect of employee stock grants, which, when they vest, increase the number of shares outstanding.

The company also announced a Q1 loss of $3.4 million, or 22 cents per share, compared to net income of $15.1 million, or 97 cents per share a year ago. CEO Andrew Duff al said in a statement that the "disappointing" results were caused by the lowest equity underwriting activity the company has seen in the past five years, and a net loss in high yield and structured products sales and trading. The company' results also included a severance charge related to reducing headcount, Duff said.

The company said it expects "weakness in the equity environment" to continue through the second quarter.

Sell - Price 32.71 on March 11
by Sterne Agee

[This is] the only company we cover that has significant exposure to the municipal-bond market...[about] 20% of [its] revenues are generated by public finance. Our 36 target [is based on] a 0.9 times discount to tangible book value of $38.99. Market-cap: $753 million.

Major volatility year in and year out, this is a great options stock in my opinion.

spec

Upgraded by Wachovia from Mkt Perform to Outperform