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Lazard Faces Sell Rating Amidst Significant Net Outflows and Challenging Financial Outlook

Lazard Faces Sell Rating Amidst Significant Net Outflows and Challenging Financial Outlook

Analyst Ryan Kenny of Morgan Stanley maintained a Sell rating on Lazard (LAZResearch Report), retaining the price target of $33.00.

Ryan Kenny has given his Sell rating due to a combination of factors impacting Lazard’s financial performance. The company reported significant net outflows of $3.6 billion for the quarter, which was more than double the consensus estimates, indicating a concerning trend in asset management. Additionally, the monthly net outflows accelerated in March to $3.1 billion, highlighting a potential ongoing issue with retaining assets under management.
While there was a slight positive in the average assets under management being 1.5% above consensus estimates, the overall market impact was negative, with a decline of $5.4 billion compared to the previous month. Furthermore, despite some growth in alternative assets, the overall financial outlook remains challenging, prompting the Sell rating. These factors combined suggest a cautious approach towards Lazard’s stock in the current market environment.

According to TipRanks, Kenny is an analyst with an average return of -3.4% and a 35.82% success rate. Kenny covers the Financial sector, focusing on stocks such as Lazard, Jefferies, and Evercore Partners.

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