Lazard (NYSE:LAZ) Price Target Cut to $40.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley lowered Lazard’s price target to $40 from $41 and maintained an “underweight” rating, implying about 8% upside from the stock’s $37.05 price.
• Analyst sentiment remains mixed: Lazard has a consensus “hold” rating and an average price target of $46.50, with four Buy, four Hold, and two Sell ratings.
• Lazard’s latest quarter fell short of expectations, reporting $0.36 in EPS versus $0.42 expected and $805 million in revenue versus $844.23 million forecast; revenue still increased 8.8% year over year.

Lazard (NYSE:LAZ - Get Free Report) had its target price dropped by analysts at Morgan Stanley from $41.00 to $40.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has an "underweight" rating on the asset manager's stock. Morgan Stanley's target price suggests a potential upside of 7.96% from the stock's current price.

LAZ has been the subject of a number of other reports. Citigroup reissued a "market outperform" rating on shares of Lazard in a research report on Friday, July 24th. Capital One Financial set a $38.00 price target on Lazard in a research report on Tuesday, October 6th. Keefe, Bruyette & Woods cut their price target on Lazard from $44.00 to $42.00 and set a "market perform" rating for the company in a research note on Friday, July 24th. UBS Group decreased their price objective on Lazard from $44.00 to $40.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Finally, Zacks Research upgraded Lazard from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $46.50.

Lazard Stock Performance

Shares of LAZ stock traded down $0.25 during trading hours on Friday, hitting $37.05. 1,043,752 shares of the company were exchanged, compared to its average volume of 1,660,911. The company has a current ratio of 2.84, a quick ratio of 2.84 and a debt-to-equity ratio of 1.87. The stock has a market capitalization of $4.10 billion, a price-to-earnings ratio of 18.14, a P/E/G ratio of 1.25 and a beta of 1.47. The firm has a fifty day simple moving average of $39.46 and a 200 day simple moving average of $42.97. Lazard has a 52-week low of $34.13 and a 52-week high of $58.75.

Lazard (NYSE:LAZ - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The asset manager reported $0.36 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.06). Lazard had a net margin of 6.95% and a return on equity of 23.58%. The firm had revenue of $805.00 million during the quarter, compared to analysts' expectations of $844.23 million. During the same quarter in the previous year, the company posted $0.56 EPS. Lazard's revenue for the quarter was up 8.8% on a year-over-year basis. Research analysts predict that Lazard will post 1.93 earnings per share for the current fiscal year.

Insider Activity

In other Lazard news, CEO Peter Orszag sold 125,000 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $43.52, for a total transaction of $5,440,000.00. Following the sale, the chief executive officer owned 260,942 shares in the company, valued at $11,356,195.84. This represents a 32.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.95% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lazard

Several hedge funds have recently made changes to their positions in the stock. Pinnacle Associates Ltd. lifted its holdings in Lazard by 60.6% during the 3rd quarter. Pinnacle Associates Ltd. now owns 12,526 shares of the asset manager's stock worth $454,000 after purchasing an additional 4,725 shares in the last quarter. Counterpoint Mutual Funds LLC bought a new position in Lazard in the 3rd quarter worth about $586,000. TD Waterhouse Canada Inc. boosted its stake in Lazard by 2.5% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 13,129 shares of the asset manager's stock worth $478,000 after purchasing an additional 320 shares during the period. GAMMA Investing LLC grew its holdings in Lazard by 37.2% during the 3rd quarter. GAMMA Investing LLC now owns 1,872 shares of the asset manager's stock valued at $68,000 after buying an additional 508 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its holdings in Lazard by 251.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,500 shares of the asset manager's stock valued at $91,000 after buying an additional 1,789 shares in the last quarter. 54.80% of the stock is currently owned by hedge funds and other institutional investors.

More Lazard News

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard declared a quarterly dividend of $0.50 per share, payable November 13 to shareholders of record November 2. The $2.00 annualized payout represents an indicated yield of approximately 5.3%, supporting the stock’s income appeal. Lazard Declares Quarterly Dividend of $0.50 per Share
• Positive Sentiment: Management said forward indicators are “really positive,” while Lazard expects its Campbell Lutyens business to generate approximately $500 million of revenue in 2027 after the planned early-November closing of the transaction. This could provide a meaningful growth driver for the Financial Advisory and asset-management businesses. Lazard plans to close Campbell Lutyens
• Neutral Sentiment: Lazard is changing two key leadership roles, a move investors may view as part of Chief Executive Officer Peter Orszag’s effort to reshape the firm and improve execution. The near-term impact on earnings remains uncertain. Lazard leadership changes
• Negative Sentiment: Third-quarter adjusted revenue was $805 million, below the approximately $844 million analyst consensus, while adjusted EPS of $0.36 missed estimates of roughly $0.42 and declined from $0.56 a year earlier. Profit weakness and fewer deal pull-forwards are the main reasons the stock has decreased. Lazard Reports Third Quarter and Nine Month 2026 Results

About Lazard

Lazard, Ltd. is a global financial advisory and asset management firm that serves corporations, financial institutions, governments, sovereign entities and individuals. Its Financial Advisory business provides advice on mergers and acquisitions, strategic matters, capital structure, restructuring, capital raising and other complex financial transactions.

Through its Asset Management business, Lazard offers investment strategies across equities, fixed income, private markets, alternatives and multi-asset portfolios.

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