Market Outperform - Price 26.96 on June 29
by JMP Securities

We reiterate our Market Outperform rating on Lazard, which trades at just 12 times our 2010 EPS forecast, or more than 6 multiple points below peers. That said, our 2Q09 outlook suggests diversified firms will see better results than [merger-and-acquisition] boutiques. We are lowering numbers for M&A boutiques except Lazard on share gains. Market cap: $2 billion.

Q: Let's talk about a few specific investment recommendations.

A: One would be Lazard [LAZ]. I like a lot of the midtier brokers -- because they have none of the legacy issues, and yet they are very likely to gain a lot of market share and a lot of talent from the big banks. The stock has moved up a lot since early March, from around 21 to 30 and change, and it's relatively expensive right now, trading at around 13.3 times forward earnings. But when the markets do come back, which they will, Lazard should be able to take a lot of share. Plus, Lazard has a traditional money-management operation that should be a big boost to earnings in the coming years.

In the financials I’m keeping an eye on Jefferies (JEF) and Greenhill (GHL), says Guy Adami. And I’m also watching Lazard (LAZ) and Raymond James (RFJ). They pulled back on Tuesday and I think it’s time to dip a toe.

I think boutique investment banks are the winners, says Guy Adami. You can’t race after them but Lazard [LAZ], Greenhill [GHL] and Jefferies [JEF] have been hiring when the others have been firing. They’re getting back to basics and at the end of this, they should be on top.

Bank on these Financial stocks: Kristin Bentz, The Talented Blonde and Senior Reporter Dan Freed handicap the Financials ahead of earnings this week.


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Finerman also likes Lazard (LAZ), Greenhill (GHL) or Goldman Sachs (GS) as an M&A play. I also like Lazard, adds Guy Adami.

BUY

Sentimental but Good Co.Disappointing somewhat

Dick Cheney likes it...

Downgraded by Citigroup from Buy to Hold