Market Overview

How To Play A Rebounding M&A Space: A Look At M&A Brokers

Share:
How To Play A Rebounding M&A Space: A Look At M&A Brokers

In a report issued Tuesday, Credit Suisse analyst Ashley N. Serrao upgraded the whole M&A brokers sector from Underweight to Neutral, on beliefs that expectations surrounding the M&A cycle “have become overly pessimistic.”

However, the experts at Credit Suisse reiterated their “call for a flatter and longer M&A cycle than those seen in the past with the next leg driven by a pick-up in European and sponsor M&A as U.S. growth slows.”

A Few Specifics

Moreover, the note assured, the firm thinks investors’ appreciation of “the slower growth trajectory for pure-play firms” like Moelis & Co (NYSE: MC) and Greenhill & Co., Inc. (NYSE: GHL) is more adequate, given the increased competition – for both revenues and talent – from fast-growing private advisors (Centerview, Perella Weinberg) and other players with better scale like Lazard Ltd (NYSE: LAZ) and Evercore Partners Inc. (NYSE: EVR), and several “headwinds from an increasingly crowded public arena with other differentiated growth stories following the recent IPO of Houlihan Lokey Inc (NYSE: HLI) and looming spin-off of PJT Partners.”

Related Link: What The Buffett Indicator Means For Stocks

Within the research firm’s universe, the analysts still recommend “paying up for scale, exposure to the two E’s Europe & Energy and non-M&A revenue streams.”

Following the recent market pullback, however, Credit Suisse’s top pick continues to be Lazard, trailed by Evercore.

  • Shares of Moelis & Co are up about 3.7 percent on Tuesday trading.
  • Greenhill & Co.’s stock is also surging, almost 1.5 percent, while Evercore is up almost 0.9 percent.
  • On the other hand, Lazard is down about 1 percent.

Image Credit: Public Domain

Latest Ratings for LAZ

DateFirmActionFromTo
Oct 2020Morgan StanleyMaintainsUnderweight
Oct 2020JMP SecuritiesMaintainsMarket Outperform
Aug 2020Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for LAZ
View the Latest Analyst Ratings

 

Related Articles (EVR + LAZ)

View Comments and Join the Discussion!

Posted-In: Ashley N. Serrao centerviewAnalyst Color Long Ideas Top Stories Analyst Ratings Movers Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
TWTROppenheimerMaintains55.0
FBTruist SecuritiesMaintains310.0
AMZNBenchmarkMaintains4,000.0
GOOGLDeutsche BankMaintains2,250.0
FBWells FargoMaintains330.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com