Houlihan Lokey initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Houlihan Lokey (HLI) with an Outperform rating and $230 price target The firm believes Houlihan’s middle-market M&A focus, strong restructuring franchise, and Financial and Valuation Advisory business position it well as the only scale player in many fragmented markets. While the company has less exposure to the cyclical upside in traditional M&A markets, it is levered to sponsors providing meaningful upside to that cohort re-engaging, the analyst tells investors in a research note.