Downgraded Earnings Outlook and Limited Upside Drive Sell Rating on Lazard

Lazard, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Ryan Kenny from Morgan Stanley maintained a Sell rating on the stock and has a $59.00 price target.

Ryan Kenny has given his Sell rating due to a combination of factors tied primarily to weaker earnings power and revenue pressure in Lazard’s core advisory franchise. He sharply reduced his fourth-quarter 2025 EPS forecast, placing it materially below consensus, largely because he anticipates softer advisory revenues than previously expected. While he does acknowledge some offset from lower compensation costs and modestly better asset management revenue, these adjustments are not enough, in his view, to fully counter the revenue shortfall.
Kenny also cut his EPS projections for 2026 and 2027, again citing sustained pressure on advisory revenue as the main driver of reduced profitability. Although he factors in incremental improvement in asset management and ongoing cost discipline, he sees the overall earnings trajectory as less compelling than the market implies. Reflecting these more conservative assumptions, he lowered his price target and applies a valuation multiple that does not suggest significant upside from current levels. Taken together, the downgraded estimates, constrained earnings outlook, and limited valuation headroom underpin his Sell recommendation on Lazard.

According to TipRanks, Kenny is an analyst with an average return of -1.9% and a 43.33% success rate. Kenny covers the Financial sector, focusing on stocks such as Lazard, Jefferies, and Evercore Partners.