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Investing.com - Investment bank Lazard (NYSE:LAZ) saw its price target lowered by Keefe, Bruyette & Woods (KBW) to $58.00 from $60.00 on Friday, while the firm maintained its Outperform rating on the stock.
The price target reduction primarily reflects KBW’s incorporation of higher compensation levels in its forward estimates, partially offset by modestly higher revenue expectations. The firm revised its 2026 and 2027 earnings per share estimates downward as a result. According to InvestingPro data, three analysts have recently revised their earnings expectations downward for the upcoming period.
Lazard shares underperformed peers by 1.3% on Friday, which KBW attributed to market uncertainty regarding the company’s future compensation leverage. The competitive hiring environment for senior talent and Lazard’s continued expansion of managing director headcount factored into KBW’s more conservative stance.
Despite the price target reduction, KBW maintained its Outperform rating on Lazard stock. The firm noted that Lazard’s third-quarter operating results exceeded modestly lower expectations.
KBW also highlighted that Lazard’s commentary remains positive regarding its revenue outlook, though the firm is taking a more cautious approach to compensation leverage expectations going forward.
In other recent news, Lazard Ltd reported its third-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $0.56, which was 27.27% higher than the forecast of $0.44. The firm also exceeded revenue predictions, posting $748 million against the anticipated $717.67 million, marking a 4.23% surprise. Despite these positive financial results, Lazard’s stock experienced a decline, influenced by broader market trends and investor concerns. Additionally, Citizens reiterated its Market Outperform rating for Lazard, maintaining a $65 price target. The research firm highlighted the attractive risk-reward potential for the investment bank. Citizens noted that Lazard’s management team has committed to tangible improvements in financial results and stock performance, with encouraging early progress visible in the company’s execution. These developments reflect recent activities and analyst perspectives on Lazard.
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