Is Hamilton Lane's Strong Q3 and Blockchain Push Reframing the Investment Case for HLNE?

• Hamilton Lane recently reported a strong third quarter, with revenues rising 27.3% year over year and both earnings and revenue surpassing analyst expectations by over 12%.
• This performance highlights the firm’s underlying momentum, likely boosted by expanding global assets under custody and increasing adoption of advanced settlement technologies such as blockchain.
• We’ll explore how Hamilton Lane’s robust quarterly results and technology-driven advancements may alter its investment narrative in the current landscape.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Hamilton Lane Investment Narrative Recap

To be a Hamilton Lane shareholder, you need to believe in the firm’s ability to drive long-term growth through expanding global assets under custody, innovative use of technology, and continued global client adoption of private market solutions. The recent Q3 results, which saw both revenue and earnings outpace expectations, reinforce ongoing momentum, but do not materially lessen the biggest immediate risk, rising operational and compliance costs as regulatory demands increase globally amid expansion. The most important short-term catalyst remains strong client demand for alternative assets and specialized fund products. Among recent developments, the partnership with The Guardian Life Insurance Company stands out as most relevant to these results. With Guardian entrusting Hamilton Lane to manage a US$5 billion portfolio and contributing US$500 million annually for the next decade, this move aligns closely with the increase in global assets under custody, directly supporting the catalysts highlighted by the Q3 outperformance. However, investors should be mindful that in contrast to headline growth, increased regulatory complexity could quickly affect margins if...

Read the full narrative on Hamilton Lane (it's free!)

Hamilton Lane's narrative projects $1.0 billion in revenue and $426.8 million in earnings by 2028. This requires a 13.2% yearly revenue growth and a $214.6 million increase in earnings from $212.2 million today.

Uncover how Hamilton Lane's forecasts yield a $157.17 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Six unique fair value estimates from the Simply Wall St Community range from US$60.44 to US$164.82 per share, revealing a wide spread of views. With client demand a major catalyst, readers can see just how much opinions differ on Hamilton Lane’s prospects, review them all to inform your outlook.

Explore 6 other fair value estimates on Hamilton Lane - why the stock might be worth less than half the current price!

Build Your Own Hamilton Lane Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hamilton Lane research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Hamilton Lane research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hamilton Lane's overall financial health at a glance.

Ready For A Different Approach?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• We've found 14 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Rare earth metals are the new gold rush. Find out which 36 stocks are leading the charge.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com