Story updated at 10 a.m. to reflect market activity.
Shares of Lazard gained .8% to $46.98 in morning trading.
The analyst firm raised its price target for the company to $54 from $48. Analysts said the upgrade is due to the company seeing favorable organic growth trends and gaining market share in advisory.
Separately, TheStreet Ratings team rates LAZARD LTD as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAZARD LTD (LAZ) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 16.8%. Since the same quarter one year prior, revenues slightly increased by 8.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, LAZARD LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
- LAZARD LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LAZARD LTD increased its bottom line by earning $1.21 versus $0.65 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $1.21).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 1091.9% when compared to the same quarter one year prior, rising from -$5.37 million to $53.22 million.
- Powered by its strong earnings growth of 900.00% and other important driving factors, this stock has surged by 29.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: LAZ Ratings Report