Lazard (LAZ) Could Be 23% Undervalued On New Medical Technology Hire

Lazard’s new medical technology lead and what it might mean for shareholders

Lazard (LAZ) has brought in Pranjal Gambhir as Head of Medical Technology, a hire that puts fresh attention on how the advisory segment is positioned within healthcare deal activity.

Lazard’s 1-day share price return of 3.06% and 7-day share price return of 1.56% come after a tougher stretch, with the 30-day share price return down 19.20% and the year-to-date share price return down 26.90%. In contrast, the 3-year total shareholder return of 39.12% shows a very different long-run picture.

Scan how Lazard compares with other investment banks aiming at healthcare deal flow by reviewing our curated list of 19 high quality undiscovered gems.

Lazard trades at US$36.36 while the average analyst target and intrinsic value estimates sit higher. How far does the gap between market price and implied fair value really run?

Most Popular Narrative: 23% Undervalued

Lazard’s most followed valuation story points to a fair value of about $47.38 per share, comfortably above the recent $36.36 close. This puts extra weight on how its expansion and cost profile play out.

Lazard’s diversification in M&A, non-M&A, and global operations allows the firm to adapt to changing market conditions and capture opportunities across different regions, potentially stabilizing revenues amidst economic uncertainties. Growth in Lazard’s financial advisory backlog, particularly in Europe, combined with a diversified business model across geographic and product lines, could buoy revenues even if specific markets face challenges.

See why 4 investors see Lazard as 23% undervalued.

Result: Fair Value of $47.38 (UNDERVALUED)

Still, Lazard’s heavier spending on new offices and alliances, along with higher hiring costs in advisory, could squeeze net margins if expected revenue momentum slows.

Find out about the key risks to this Lazard narrative.

Next Steps

Mixed signals on Lazard and its outlook can tempt you to lean too hard in either direction, so move quickly and review the numbers, risks, and potential upsides yourself. Start with the 3 key rewards and 3 important warning signs.

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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.
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