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MC: Share Repurchases And Higher Profitability Will Support Moderate Future Upside

Automation And Regulations Will Compress M&A Revenues Despite Growth Efforts

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MC
AnalystLowTarget
Not Invested
Published 22 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 4.62%
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AnalystLowTarget's Fair Value
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1Y
-6.8%
7D
-0.3%

Analysts have nudged their price target on Moelis up by 5 percent to 68 dollars, citing expectations for stronger profitability and a lower future earnings multiple, despite slightly softer projected revenue growth.

What's in the News

  • Completed a multi year share repurchase program totaling 3,352,750 shares, or 5.57 percent of outstanding shares, for 152.4 million dollars under the buyback announced on February 6, 2019 (Key Developments)
  • In the latest tranche from July 1, 2025 to September 30, 2025, repurchased 205,966 shares, or 0.28 percent of outstanding shares, for 14.57 million dollars (Key Developments)

Valuation Changes

  • The fair value estimate has risen slightly from 65.0 dollars to 68.0 dollars per share, reflecting a modestly higher intrinsic valuation.
  • The discount rate has edged up from approximately 8.12 percent to 8.23 percent, indicating a marginally higher required return on equity.
  • The revenue growth assumption has eased slightly from about 13.14 percent to 12.83 percent annually, pointing to more conservative top-line expectations.
  • The net profit margin forecast has increased meaningfully from roughly 19.68 percent to 23.25 percent, signaling improved anticipated profitability.
  • The future P/E multiple has fallen significantly from about 19.36 times to 14.95 times forward earnings, lowering the valuation multiple applied to projected profits.

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Disclaimer

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