Lazard: Snag Endures, No End In Sight For PE Deal Shortfall

Lazard shows strength in Asset Management, with revenue up 23% YoY and positive fee mix shifts on AUM growth. Advisory faces headwinds from geopolitics, rising capital costs and associated subdued private equity M&A, limiting near-term catalysts. Strategic activity and restructuring support advisory, but DCM and ECM outlook remains weak amid ongoing market uncertainty driven by capital cost risks. LAZ trades at a 19x forward PE, where AM pureplays, arguably more robust right now, trade at similar or lower levels, implying high multiples for a beleaguered advisory outlook.

The AM business is doing quite well, and isn't really concerning though we expect some market wobbles in the