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On Monday, Keefe, Bruyette & Woods analysts revised their outlook on Hamilton Lane Inc . (NASDAQ: NASDAQ:HLNE), reducing the price target to $155 from $162. The firm maintained its Market Perform rating on the stock.
Hamilton Lane recently reported a strong performance for the fourth quarter of fiscal year 2025, driven by a $58 million boost in performance revenues. This increase was attributed to changes in the fee structure of certain U.S. Evergreen funds, including PAF, which led to a catch-up in revenues. The company’s robust financial health is reflected in its "GREAT" overall score on InvestingPro, with impressive revenue growth of 29% and strong profitability metrics.
Despite the recent performance, analysts at Keefe, Bruyette & Woods revised their earnings per share (EPS) estimates for fiscal years 2026 and 2027. The updated EPS projections are now $4.70 and $5.65, respectively, down from previous estimates of $5.17 and $5.94. This adjustment reflects expected higher expenses and lower incentive, base management, and advisory fees.
The revised price target is based on the lower EPS estimate for fiscal year 2027, while maintaining a consistent multiple of approximately 27 times earnings. The firm’s decision to adjust the price target underscores the anticipated financial challenges for Hamilton Lane in the coming years.
Hamilton Lane’s shares continue to be rated as Market Perform by Keefe, Bruyette & Woods, indicating a neutral outlook on the stock’s potential performance relative to the market.
In other recent news, Hamilton Lane Inc. reported its first-quarter 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $1.21 compared to the forecasted $1.14. The company’s revenue also outperformed projections, reaching $197.97 million against an anticipated $165.72 million. Despite these positive financial results, the company’s stock experienced a notable decline in pre-market trading. Hamilton Lane’s total asset footprint increased by 4% year-over-year, amounting to $958 billion, with assets under management growing by 11% to $138 billion. The firm also reported a 14% rise in total management and advisory fees, totaling $514 million. Additionally, Hamilton Lane increased its annual dividend by 10% to $2.16 per share. Recent strategic developments include the launch of several new Evergreen funds, reflecting the company’s ongoing commitment to innovation and growth. The firm remains optimistic about its future, focusing on expanding its Evergreen product line and investing in strategic opportunities, such as its recent investment in the AI-powered data platform, 73 Strings.
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