Lazard (LAZ) has received a new Hold rating, initiated by BMO Capital analyst, .
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BMO Capital’s rating is based on a combination of factors that reflect both optimism and caution regarding Lazard’s future performance. The firm has shown strong progress in its advisory business under the leadership of CEO Peter Orzag, achieving record results and demonstrating improved productivity. Additionally, the asset management segment is beginning to show positive signs, with promising inflows and new leadership that could drive future growth.
However, BMO Capital remains cautious due to concerns about compensation leverage, which is seen as a significant hurdle in achieving management’s objectives. The consensus expectations for compensation leverage in 2026 and 2027 appear overly optimistic, which tempers the bullish outlook. Furthermore, while the turnaround plan is gaining traction, there is substantial revision risk that warrants a Hold rating until more sustained momentum is observed.