Lazard Nears Inflection, Bank Of America Initiates Coverage At Buy

Lazard Inc‘s (NYSE:LAZ) recent initiatives appear close to “hitting an inflection” and provide “reasons to add exposure to the stock,” according to BofA Securities.

The Lazard Analyst: Analyst Ebrahim Poonawala initiated coverage with a Buy rating and price target of $65.

The Lazard Thesis: The company developed a more diversified business model than peers, due to its global asset management business, which contributes around 40% of total revenues, Poonawala said in the initiation note.

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The diversified business, cyclical tailwinds to M&A activity and a turnaround effort (Lazard 2030) that was kicked off under CEO Peter Orszag appear close to “hitting an inflection,” he added.

The recent appointment of industry veteran Chris Hogbin to lead the asset management business “could accelerate the turnaround efforts,” the analyst stated.

The current discount at which the stock trades relative to peers should narrow as the Street gains greater confidence in management’s execution, he said.

“Positive proof points surrounding management’s turnaround efforts should serve as stock catalysts,” Poonawala further wrote.

LAZ Price Action: Shares of Lazard had risen by 1.05% to $51.93 at the time of publication on Monday.

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