UBS changed its rating for the independent investment banking firm based on a valuation call, a recent pull back in shares and strong productivity.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Separately, TheStreet Ratings team rates EVERCORE PARTNERS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EVERCORE PARTNERS INC (EVR) 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 impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. 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:
- EVERCORE PARTNERS INC has improved earnings per share by 47.0% 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 two years. We feel that this trend should continue. During the past fiscal year, EVERCORE PARTNERS INC increased its bottom line by earning $1.41 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.57 versus $1.41).
- 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 77.0% when compared to the same quarter one year prior, rising from $5.97 million to $10.57 million.
- Powered by its strong earnings growth of 47.05% and other important driving factors, this stock has surged by 43.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for EVERCORE PARTNERS INC is rather low; currently it is at 18.37%. Regardless of EVR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.93% trails the industry average.
- You can view the full analysis from the report here: EVR Ratings Report