A Fresh Look at Lazard’s (LAZ) Valuation After Strong Earnings and Revenue Growth

Lazard (NYSE:LAZ) just posted a 12% jump in quarterly revenue and comfortably outperformed estimates on both earnings and assets under management. Even with these results, shares slipped almost 2% after the release.

See our latest analysis for Lazard.

Lazard’s new leadership moves come shortly after a solid quarterly beat, but the share price reaction has been more cautious than celebratory. At $50.42, Lazard’s stock has recovered 5% over the past month. However, it remains down more than 9% on a total return basis for the past year. While recent returns suggest some regained momentum, long-term holders have still seen significantly positive total shareholder returns over the last three and five years.

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With Lazard trading at a discount to analyst targets even after this quarter’s strong results, investors are left to wonder if the company is undervalued or if expectations for future growth are already reflected in the price.

Most Popular Narrative: 13.3% Undervalued

At $50.42, Lazard trades meaningfully below the narrative’s fair value estimate of $58.17. This setup positions the stock as an undervalued opportunity if key expectations hold.

Lazard's expansion in the Middle East with a new Financial Advisory office in Abu Dhabi could strain resources and lead to higher operating costs without immediate revenue impact. This could potentially affect net margins. The strategic alliance with Arini Capital Management to expand connectivity to private capital in Europe might take time to contribute to revenue streams and could involve integration costs, impacting short-term earnings.

Read the complete narrative.

Want to see what kinds of growth assumptions push Lazard’s fair value upward? The catalyst is a set of bullish forecasts about revenue acceleration and future profit margins. Discover which aggressive projections and multi-year expectations underpin this optimistic price target. Find out what could power Lazard’s next move.

Result: Fair Value of $58.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if rising operating costs outpace Lazard’s revenue growth or if new strategic expansions underperform, the current outlook could quickly change direction.

Find out about the key risks to this Lazard narrative.

Build Your Own Lazard Narrative

If you see the story differently, or want to put your own take on Lazard’s outlook, you can easily build your own narrative in just a few minutes. Do it your way

A great starting point for your Lazard research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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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.

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