Keefe, Bruyette & Woods Issues Pessimistic Forecast for Lazard (NYSE:LAZ) Stock Price

Key Points

• Keefe, Bruyette & Woods cut Lazard’s price target from $44 to $42 and kept a “market perform” rating, implying about 5.6% downside from the current share price.
• Lazard’s latest quarterly results were weak on profits: EPS of $0.12 badly missed estimates of $0.34, even though revenue came in above expectations at $786.0 million.
• Analyst sentiment on the stock remains mixed, with an overall Hold rating and an average price target of $50.38, while the shares rose 3.3% to $44.47 in Friday trading.

Lazard (NYSE:LAZ - Get Free Report) had its price target decreased by stock analysts at Keefe, Bruyette & Woods from $44.00 to $42.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a "market perform" rating on the asset manager's stock. Keefe, Bruyette & Woods' target price indicates a potential downside of 5.56% from the stock's current price.

Several other research analysts have also weighed in on LAZ. Citigroup reaffirmed a "market outperform" rating on shares of Lazard in a research report on Friday. Morgan Stanley set a $44.00 price target on Lazard in a research note on Friday. Citizens Jmp cut their price objective on shares of Lazard from $65.00 to $60.00 and set a "market outperform" rating on the stock in a research report on Friday, April 10th. Zacks Research upgraded shares of Lazard from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Finally, Argus decreased their target price on shares of Lazard from $63.00 to $52.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $50.38.

Lazard Trading Up 3.3%

Shares of LAZ stock traded up $1.42 during trading hours on Friday, reaching $44.47. 1,125,184 shares of the stock traded hands, compared to its average volume of 1,659,624. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.94. The firm has a market capitalization of $4.97 billion, a PE ratio of 17.58, a PEG ratio of 0.64 and a beta of 1.43. Lazard has a 1-year low of $38.67 and a 1-year high of $58.75. The business has a fifty day moving average price of $44.26 and a 200 day moving average price of $46.80.

Lazard (NYSE:LAZ - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The asset manager reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.22). Lazard had a return on equity of 29.30% and a net margin of 8.47%.The firm had revenue of $786.02 million for the quarter, compared to analysts' expectations of $736.29 million. During the same quarter in the previous year, the firm posted $0.52 earnings per share. The company's revenue for the quarter was up 1.5% on a year-over-year basis. On average, equities research analysts forecast that Lazard will post 2.63 EPS for the current year.

Institutional Investors Weigh In On Lazard

A number of hedge funds have recently bought and sold shares of LAZ. UBS Group AG lifted its holdings in shares of Lazard by 97.6% during the fourth quarter. UBS Group AG now owns 332,333 shares of the asset manager's stock worth $16,138,000 after buying an additional 164,168 shares during the last quarter. Algebris UK Ltd. bought a new stake in shares of Lazard in the fourth quarter valued at approximately $24,424,000. Altfest L J & Co. Inc. acquired a new stake in shares of Lazard in the fourth quarter worth $1,136,000. Fisher Asset Management LLC increased its position in Lazard by 2.2% during the fourth quarter. Fisher Asset Management LLC now owns 1,760,637 shares of the asset manager's stock worth $85,497,000 after acquiring an additional 38,133 shares during the period. Finally, Jefferies Financial Group Inc. bought a new position in Lazard during the fourth quarter worth $1,983,000. 54.80% of the stock is currently owned by institutional investors.

Lazard News Roundup

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard reiterated its long-term growth plans, including a $500 million Lazard Cl 2027 revenue target and a goal of $10 million in revenue per managing director by 2028, signaling confidence in future operating leverage.
• Positive Sentiment: Management said forward indicators are beginning to translate into revenue and earnings, suggesting an improving deal environment and potential second-half momentum. Article Title
• Positive Sentiment: Lazard declared a quarterly dividend of $0.50 per share, which may support investor sentiment around capital returns.
• Neutral Sentiment: CEO Peter Orszag said AI should lead to “leaner” deal teams with more managing directors, pointing to a potential efficiency boost but also signaling ongoing organizational change. Article Title
• Neutral Sentiment: The company’s advisory-unit overhaul and headcount reductions, including over 80 managing director roles cut, reflect a strategic reset that could improve margins over time but also highlight near-term disruption.
• Negative Sentiment: Second-quarter EPS of $0.12 missed estimates by a wide margin, with profit falling 91% year over year, underscoring weak earnings quality despite better-than-expected revenue. Article Title
• Negative Sentiment: Revenue in financial advisory declined, and the business remains exposed to volatility in deal activity, which is weighing on sentiment.
• Negative Sentiment: News that Cresset hired a Lazard advisory duo may reinforce concerns about talent retention in a competitive advisory market. Article Title

Lazard Company Profile

Lazard Ltd. NYSE: LAZ is a leading global financial advisory and asset management firm, offering a comprehensive suite of services to corporations, governments and individuals. Founded in 1848, Lazard has built a reputation for providing independent advice and innovative solutions in complex financial transactions. The firm is publicly traded on the New York Stock Exchange under the ticker symbol LAZ and maintains its headquarters in Hamilton, Bermuda.

In its Financial Advisory segment, Lazard assists clients with mergers and acquisitions, restructurings, capital structure optimization and strategic planning.

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