Wolfe Research Downgrades Lazard Outlook to Peer Perform

Wolfe Research downgrades Lazard's outlook to Peer Perform amid projected revenue growth of 1.07% for the upcoming year. The average price target suggests a 27.61% upside from current share price.

Date: 04-01-2025

AI Rating: 5

Current Rating Overview
Wolfe Research's downgrade of Lazard from 'Outperform' to 'Peer Perform' could cause investor caution, impacting stock prices negatively in the short term. However, the upside forecast could buffer against severe price drops.

Earnings Per Share (EPS)
The report mentions a projected non-GAAP EPS of 4.65 for Lazard. This information is crucial as EPS reflects a company’s profitability. If this projection meets or exceeds expectations, it could mitigate any negative sentiment stemming from the downgrade.

Revenue Growth
The projected annual revenue for Lazard is highlighted at 3,080MM, with a modest increase of 1.07%. This indicates slight growth, which may not impress investors seeking more robust revenue performance, but does signal stability.

Institutional Sentiment
With an increase of 9.00% in institutional ownership, and significant increases in shareholdings by major funds like Capital Research Global Investors (up 127.59%), it suggests positive sentiment from institutional investors despite the downgrade. Their actions might buffer stock price performance.

Overall Implications for Investors
While the downgrade and moderate projected revenue may raise concerns, the upside potential indicated by the average price target could attract investors looking for growth opportunities. There's an opportunity for price recovery if Lazard can deliver on its EPS projection. Thus, the overall outlook remains cautious but not entirely negative, attempting to balance stability with potential growth.

Stocks: LAZ