On September 19, 2023, financial advisory and asset management firm, Lazard Ltd (NYSE:LAZ), received a downgrade from The Goldman Sachs Group. The stock analysts downgraded Lazard’s rating from “neutral” to “sell,” according to a research report issued by FlyOnTheWall.
As the market opened on Tuesday, LAZ stock was priced at $33.42. Lazard has displayed a range of financial indicators for the past year, with a debt-to-equity ratio of 4.06, a quick ratio and current ratio of 1.56 each. Over the past fifty-two weeks, Lazard’s stock has fluctuated between a low of $27.71 and a high of $43.44. With a market cap of $3.77 billion, the company currently holds a price-to-earnings ratio of -185.66 and operates with a beta value of 1.41. Its 50-day simple moving average is recorded at $34.09, while its 200-day simple moving average stands at $32.55.
Lazard Ltd serves as both a financial advisory and asset management institution with operations spanning North America, Europe, Asia, Australia, and Central and South America. The company operates in two main segments: Financial Advisory and Asset Management. Its Financial Advisory segment offers various services related to mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters.
In their latest quarterly earnings report on July 27th????? , Lazard revealed an EPS (earnings per share) of $0.24 for the quarter; this exceeded analyst consensus estimates by $0.13 per share ($0.11 EPS). Their revenue for the same period amounted to $620 million compared to analyst predictions around $572 million—an increase that accounts for an 8.3% decrease year-over-year. Lazard boasted a return on equity of 30.45% and a net margin of 0.07%. A year prior, during the corresponding period, the company reported $0.92 EPS.
As for the future, research analysts maintain an average forecast that Lazard will post earnings per share of 0.79 for the current fiscal year.
This downgrade by The Goldman Sachs Group represents a new development in Lazard’s stock market trajectory. Investors and industry professionals will be watching closely to see how this rating adjustment reflects in the company’s performance moving forward.
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Lazard Receives Positive Ratings and Investor Interest as Confidence Grows
In recent months, Lazard, the prominent asset management company, has caught the attention of equities research analysts and large investors alike. The commendable performance of Lazard has sparked a series of ratings upgrades and new positions being taken by investors.
Morgan Stanley, one of the leading financial services firms, upgraded their rating on Lazard from “equal weight” to “overweight” in a research report released on July 12th. They also increased their price target for the company from $36.00 to $43.00. This upgrade signifies Morgan Stanley’s confidence in Lazard’s future prospects.
Wolfe Research also revised their rating on Lazard from “underperform” to “peer perform.” This change indicates that Wolfe Research now believes that Lazard will perform at par with its industry peers. Such improvements in ratings are clear indicators of investor interest and faith in the company.
StockNews.com, a renowned financial news website, recently initiated coverage on shares of Lazard and assigned a “hold” rating. While this may not be as optimistic as an upgrade or positive rating, it still acknowledges the potential stability and attractiveness of investing in Lazard.
Keefe, Bruyette & Woods joined the ranks of analysts who revised their rating on Lazard. They upgraded the company from “underperform” to “market perform,” along with raising their target price from $31.00 to $36.00. This revision demonstrates a more favorable outlook for Lazard within the market environment.
UBS Group also adjusted their price target for Lazard from $32.00 to $37.00 while maintaining a “neutral” rating on the stock. Their analysis indicates that they believe Lazard’s value is likely to remain steady without significant fluctuations in either direction.
Although opinions vary among different analysts and firms, Bloomberg.com reports that there is currently an overall consensus among them regarding Lazard’s status as a “Hold.” The consensus target price of $42.25 further establishes Lazard’s position within the market.
Meanwhile, large investors have taken notice and made significant moves in regards to Lazard. CoreCap Advisors LLC purchased a new position in Lazard during the fourth quarter, illustrating their belief in the company’s potential growth. CENTRAL TRUST Co increased their holdings in Lazard by over 88%, suggesting their confidence in the asset manager’s performance. Parallel Advisors LLC also boosted their stake in Lazard by 130.1% during the second quarter, further signaling investor interest. Acadian Asset Management LLC and Tower Research Capital LLC TRC also acquired positions in Lazard, further solidifying its appeal to large institutional investors.
Collectively, these ratings upgrades and investments highlight the confidence that analysts and large investors have placed in Lazard’s ability to deliver favorable returns going forward. While opinions may vary slightly, the overall sentiment remains positive, positioning Lazard as an attractive investment opportunity within the market.
