Lazard Faces Sell Rating Amid Accelerating Net Outflows and Challenging Financial Outlook

Analyst Ryan Kenny from Morgan Stanley maintained a Sell rating on Lazard (LAZ – Research Report) and keeping the price target at $33.00.

Ryan Kenny has given his Sell rating due to a combination of factors impacting Lazard’s financial performance. One of the primary concerns is the significant acceleration in net outflows, which reached $3.7 billion in May, compared to just $0.2 billion in the previous month. This increase in outflows is more than double the consensus expectations for the quarter, indicating potential challenges in retaining client assets.
Moreover, while Lazard’s assets under management (AUM) saw a slight increase of 1.7% month-over-month, this growth was not sufficient to offset the negative impact of the outflows. Additionally, despite a positive market impact of $7.4 billion, the overall financial outlook remains concerning. These factors combined suggest a less favorable investment environment for Lazard, leading to the Sell recommendation.