Nomura Lowers Price Target On Greenhill & Co. Following 4Q EPS Report
In a report published Thursday, Nomura analyst Steven Chubak reiterated a Neutral rating on Greenhill & Co. (NYSE: GHL), but lowered the price target from $44.00 to $38.00.
In the report, Nomura noted, “GHL reported 4Q EPS of $0.51, below our forecast of $0.69 and cons. of $0.62. GHL reported total revenues of $76.4mn, below our $95mn forecast (and $90mn consensus), a disappointing result. YoY decline is even more notable, with Advisory revenues down -2% YoY, vs. +20% growth at US Bulge Bracket peers (and mid-to-high teens growth for the broader industry per Dealogic). 2014 operating expenses declined -4% YoY (consistent with the % decline in revenues), reflecting continued comp discipline as well as favorable FX tailwinds. We cut our forecasts for 2015 and 2016 to $1.71 and $2.01, respectively, which compares to cons. of $2.03 and $2.27 (note: cons. has not yet been amended to reflect updated 4Q results, management guidance). We expect negative revisions to cons. given 4Q model flow-through impact and revenue forecasts, which appear too high for 1Q15 ($72mn) given the current backlog.”
Greenhill & Co. closed on Wednesday at $38.23.
Latest Ratings for GHL
Date | Firm | Action | From | To |
---|---|---|---|---|
Nov 2020 | Keefe, Bruyette & Woods | Downgrades | Market Perform | Underperform |
Oct 2020 | Keefe, Bruyette & Woods | Upgrades | Underperform | Market Perform |
Jul 2020 | Piper Sandler | Maintains | Neutral |
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Posted-In: Nomura Steven ChubakAnalyst Color Price Target Analyst Ratings