Cowen Gets Buy Calls

"Cowen businesses are heavily driven by equity markets, so it is disproportionately exposed to any market downturn," Moszkowski said in the report.

Meanwhile, the firm also earned $17.7 million of its $83.6 million in revenue from private placements -- including assisting PIPEs deals, or private investments in public equity. Cowen's revenue from private placement increased nearly fivefold in the quarter, but as PIPEs deals draw regulatory scrutiny, Cowen's revenue from these deals may be at risk.

"PIPEs have begun to draw the attention of regulators concerned about inappropriate use by investors of the information about a coming issue. This is a growing business for Cowen and could be constrained by government regulation/intervention," the report said.