The Forecast Just Changed on Lazard Ltd (LAZ)

The Forecast Just Changed on Lazard Ltd (LAZ)


Many stocks have been testing new highs in 2020, and one of the most notable is Lazard Ltd (LAZ). Currently, LAZ is trading at $33.00 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $29.57.

To add more color to this target, the company’s high over the last year is $44.95 and the low is $20.94. Over the last 52 weeks, LAZ is down -26.59% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, LAZ reported a profit of $84.1 million. Lazard Ltd also saw revenues increase to $538.01 million. In addition, LAZ has free cash flow of -$167.99 million as of 03-2020 The company’s EBITDA came in at $194.63 million which compares well with its peers.

LAZ booked profit margins of 9.80%, its Return on Equity (ROE) is 43.40%, and its Return on Assets is 4.60%. All told, it is clear that, LAZ needs to be on your watchlist.

About Lazard Ltd

If readers are unfamiliar, Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. Its Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions and other strategic matters, capital advisory, restructurings, shareholder advisory, sovereign advisory, capital raising, and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign, and individual clients. The company’s Asset Management segment offers a range of investment solutions and investment management services in equity and fixed income strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients. Lazard Ltd was founded in 1848 and is based in Hamilton, Bermuda.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LAZ has a short ratio of 4.50 and outstanding shares of 106.30M.

Company Outlook

LAZ has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.93 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.22. Investors should also keep an eye on sector updates as LAZ has historically followed its peers on positive news.

All told, Lazard Ltd LAZ has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LAZ represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Lazard Ltd LAZ is now commanding a market cap of 3.56B and a float of 107.73M. LAZ is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LAZ stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in LAZ, either long or short, and we have not been compensated for this article.