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On Monday, Keefe, Bruyette & Woods analyst Aidan Hall increased the price target on Perella Weinberg Partners (NASDAQ:PWP) stock to $29.00, up from the previous $27.00, while reaffirming an Outperform rating for the company. This adjustment comes after Perella Weinberg’s shares experienced a decline on Friday, falling 6.7% compared to the 2.7% average drop among its peers. The decrease occurred despite the firm’s earnings per share (EPS) surpassing expectations, alongside revenue figures that Hall considered to be relatively in line with those of the peer group.
The analyst’s commentary highlighted that Perella Weinberg’s third-quarter results were record-setting, and the fourth-quarter expectations shared by the company aligned with the actual outcomes, which should not have been unexpected. The company’s strong performance is reflected in its 35.4% revenue growth over the last twelve months, with an impressive gross profit margin of 97.7%. Furthermore, the discussion during the company’s earnings call was described as constructive, noting an improving, though still volatile, operating environment.
Hall’s revised price target is based on 17 times the firm’s projected 2026 earnings, with some minor adjustments made to forward estimates. He views the recent dip in Perella Weinberg’s stock price as an attractive buying opportunity and reiterates the Outperform rating.
Perella Weinberg Partners, a global financial services firm, has been navigating the fluctuating market conditions and despite the recent underperformance relative to its peers, Keefe, Bruyette & Woods sees the potential for growth in the company’s stock value. The new price target suggests confidence in Perella Weinberg’s long-term prospects and the firm’s ability to capitalize on the current market environment.
In other recent news, Perella Weinberg Partners (PWP) announced record revenues of $878 million for the full year of 2024, a 35% increase compared to the previous year. Despite this strong performance, the company faced challenges in maintaining cost efficiency. The adjusted compensation margin decreased to 67% from 70% in 2023. Furthermore, PWP returned a record $282 million to equity holders. The firm anticipates continued activity in the M&A market and expects single-digit growth in non-compensation expenses for 2025. PWP is targeting a mid-60s compensation margin over the long term and remains optimistic about opportunities in the sponsor and restructuring markets. These are the recent developments for Perella Weinberg Partners.
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