Lazard (LAZ) Stock Forecast & Price Target

Lazard Inc. has demonstrated a positive outlook due to an 8.2% increase in its public pipeline compared to prior quarters, significantly outpacing the peer average decline of 6.7%. Additionally, deal sentiment has shown strong improvements, with a 32% year-over-year increase in announcements recorded in the U.S. and a 26% increase in Europe during the third quarter to date. Furthermore, the firm is set to exceed its target of 10-15 net annual managing director hires by 2025, highlighting its commitment to growth and expansion.

Lazard Inc faces a challenging outlook, as a potential stall in the M&A recovery could limit revenue growth and lead to a higher compensation ratio, particularly aligned with an operating environment resembling that of 2024 in the downside scenario. Furthermore, while the sentiment towards European and international securities remains elevated, it follows nearly a decade of consistent underperformance, which casts doubt on the sustainability of any short-term gains. Lastly, despite the structural tailwinds for asset managers with broad exposure to global equities, the overall context suggests that Lazard may struggle to maintain its current performance trajectory.