Houlihan Lokey (HLI – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Ryan Kenny from Morgan Stanley maintained a Buy rating on the stock and has a $159.00 price target.
Ryan Kenny has given his Buy rating due to a combination of factors including Houlihan Lokey’s impressive financial performance and strategic positioning. The company delivered a significant earnings beat, with a 21% increase in adjusted EPS, driven by strong results in Corporate Finance, Restructuring, and Financial & Valuation Advisory. This performance, coupled with improved non-compensation efficiency, indicates robust operational management.
Furthermore, the outlook for Houlihan Lokey remains positive, with management expressing confidence in continued momentum across all business lines. The firm’s strategic initiatives, such as the integration of Capital Markets and Private Funds groups, have shown substantial growth, contributing to its overall success. Additionally, the company’s recurring revenue streams and stable compensation ratio management support a higher price target, reflecting its resilience and potential for future growth.
Kenny covers the Financial sector, focusing on stocks such as Jefferies, Lazard, and SEI Investments Company. According to TipRanks, Kenny has an average return of -3.3% and a 37.31% success rate on recommended stocks.