We have issued an updated research report on Lazard Ltd. LAZ on Jun 24, 2015. We believe Lazard remains well positioned over the long term, given the prevailing macroeconomic headwinds, a limited upside is expected in the near term. Further, at the current level, asset management businesses are under cyclical and secular pressures.
Concentration risk also might arise for Lazard owing to over dependence on Financial Advisory revenues. Notably, these revenues contribute nearly 52% to Lazard’s total revenue.
Though Lazard is diligently working on its cost-containment measures directed toward improving profitability with minimal impact on revenues, heavy dependence on overseas revenues give rise to a plethora of risks stemming from the regulatory and political environment, foreign exchange fluctuations and performance of the regional economy.
Over the last 30 days, the Zacks Consensus Estimate increased slightly for fiscal 2015 to stand at $3.58 per share. However, for fiscal 2016, the Zacks Consensus Estimate remained stable at $3.95 per share over the same time frame.
Currently, Lazard carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Some better-ranked investment management stocks that are worth a look include Affiliated Managers Group Inc. AMG, AllianceBernstein Holding L.P. AB and Woori Bank Co., Ltd. WF. All three stocks hold a Zacks Rank #2 (Buy).
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