Evercore Rated Buy as M&A Activity Accelerates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Benzinga
- Investment Rating Upgrade: BofA Securities analyst Ebrahim Poonawala initiated coverage of Evercore Inc (NYSE:EVR) with a Buy rating and a price target of $435, reflecting strong confidence in its future growth prospects.
- Revenue Structure Advantage: Approximately 80% of Evercore's advisory revenues come from advisory services, divided almost equally between M&A and non-M&A advisory, indicating a solid market position and diversified revenue streams.
- Technical Expertise and Expansion: Evercore enhances its technical expertise and market share through acquisitions like UK advisory firm Robey Warshaw, positioning itself to benefit from the expanding M&A activity, particularly outside the US.
- Future Growth Potential: The analyst noted that M&A activity is expected to reach record highs by 2026, providing Evercore with positive earnings revision opportunities, further solidifying its leading position in the investment banking sector.
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Analyst Views on EVR
Wall Street analysts forecast EVR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EVR is 389.87 USD with a low forecast of 342.36 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 363.180
Low
342.36
Averages
389.87
High
425.00
Current: 363.180
Low
342.36
Averages
389.87
High
425.00
About EVR
Evercore Inc. is an investment banking and investment management company. The Company's segment includes Investment Banking & Equities and Investment Management. Investment Banking & Equities includes the investment banking business through which it provides advice to clients on significant mergers, acquisitions, divestitures, shareholder activism, and other strategic corporate transactions, with a particular focus on advising multinational corporations and private equity firms on large, complex transactions. It also provides liability management and restructuring advice to companies in financial transition, as well as to creditors, shareholders, and potential acquirers. Investment Management includes the wealth management business, through which it provides investment advisory, wealth management and fiduciary services for high-net-worth individuals and associated entities, and the private equity business, which holds interests in private equity funds not managed by the Company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BofA Securities Initiates Buy Ratings on Evercore and Lazard
- M&A Activity Outlook: Analyst Ebrahim Poonawala from BofA Securities highlights expectations for record M&A activity driven by pent-up demand from strategic investors and financial sponsors, which is likely to boost Evercore and Lazard's business growth.
- Favorable Macro Environment: The analyst notes that a more accommodative regulatory environment, stable to declining interest rates, and ample credit availability will further enhance the activity level of M&A transactions, bolstering market confidence.
- Stock Performance Divergence: In afternoon trading, Evercore shares rose by 0.5%, Lazard increased by 2%, while Piper Sandler fell by 1.5%, indicating varied market reactions to different investment banks.
- Piper Sandler Rating: Although BofA initiated Piper Sandler with an Underperform rating, the analyst maintains a constructive view, citing limited leverage to large-cap strategic transactions, particularly in technology, which may affect its future M&A recovery.
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Evercore Rated Buy as M&A Activity Accelerates
- Investment Rating Upgrade: BofA Securities analyst Ebrahim Poonawala initiated coverage of Evercore Inc (NYSE:EVR) with a Buy rating and a price target of $435, reflecting strong confidence in its future growth prospects.
- Revenue Structure Advantage: Approximately 80% of Evercore's advisory revenues come from advisory services, divided almost equally between M&A and non-M&A advisory, indicating a solid market position and diversified revenue streams.
- Technical Expertise and Expansion: Evercore enhances its technical expertise and market share through acquisitions like UK advisory firm Robey Warshaw, positioning itself to benefit from the expanding M&A activity, particularly outside the US.
- Future Growth Potential: The analyst noted that M&A activity is expected to reach record highs by 2026, providing Evercore with positive earnings revision opportunities, further solidifying its leading position in the investment banking sector.
Continue Reading