Has Lazard Now Become Too Big To Ignore?

Considering the rate of global economic growth and pro-business policies in the White House, Capital Markets anticipates a continuation of the present M&A environment and, consequently, market share gains for advisory groups. As a financial advisory and asset management firm, Lazard Ltd LAZ is positioned to capitalize on these conditions.

Capital Markets upgraded Lazard to Outperform and justified its position by the company’s diversified asset management and capacity for substantial growth, in spite of industry trends of active-to-passive flow. Lazard’s restructuring franchise, global nature and breadth of services lend a performance advantage over competitors.

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“We believe there is growth potential for both Lazard’s premier advisory franchise and its global asset management business and feel that the market is undervaluing the Lazard platform relative to peers,” Capital Markets’ Ann Dai wrote in a Friday note.

Based on risks dependent on “the health of the M-and-A market and to asset values,” the firm issued a price target of $51.

Lazard shares were trading around $43.38 at the time of publication.