Wells Fargo analyst Michael Brown maintained a Hold rating on Lazard (LAZ – Research Report) yesterday and set a price target of $38.00.
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Michael Brown has given his Hold rating due to a combination of factors affecting Lazard’s performance. The company’s assets under management (AUM) saw a modest increase of 1.8% month-over-month, primarily driven by favorable foreign exchange movements despite slight net outflows. This growth, although positive, was somewhat tempered by weak market actions that did not fully capitalize on non-U.S. equity index outperformance and minor bond index gains.
Recent trends in Lazard’s fund flows have shown improvement, with April’s organic decay significantly lower than previous months. However, the overall flow trend since September 2023 has been predominantly negative, with only a couple of months showing positive flows. Additionally, Lazard’s high equity weighting makes it sensitive to market volatility, and while the stock market showed signs of recovery in May, the firm’s performance remains closely tied to European equity trends and currency fluctuations. These mixed signals contribute to the Hold rating, as the potential for growth is balanced by ongoing uncertainties.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $46.00 price target.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LAZ in relation to earlier this year.