Lazard (LAZ) Stock Forecast & Price Target

Lazard Inc has demonstrated a strong public pipeline growth of 8.2% since the end of the second quarter, significantly outpacing the peer average which declined by 6.7%, indicating a robust outlook for financial advisory activities. Additionally, deal-making sentiment is showing positive momentum, with third-quarter-to-date announcements increasing by 32% in the U.S. and 26% year-over-year in Europe, suggesting a favorable environment for the firm's operations. The company is also enhancing its talent pool, with plans to exceed its annual goal of adding 10-15 managing directors by 2025, which further supports its growth potential in the financial advisory sector.

Lazard Inc faces a potential downturn in revenues as M&A activity may stagnate, particularly mirroring less favorable operating conditions akin to those in 2024. The company's reliance on equities, which constitute over 80% of its assets under management, could be challenged by a prolonged period of diminished performance in European and international securities following years of underwhelming results. Furthermore, increasing compensation ratios in a tougher financial environment may further strain profitability, contributing to a negative outlook for the stock.