UBS Raises Price Target on Greenhill & Co. (GHL) to $17; Reiterates Sell
- Wall Street turns defensive on Trump's protectionist stance
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- Qualcomm (QCOM) Thrashed as Apple (AAPL) Lawsuit Threatens Licensing Business Model
- McDonald's (MCD) Tops Q4 EPS by 3c
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
UBS reiterated a Sell rating on Greenhill & Co. (NYSE: GHL), and raised the price target to $17.00 (from $13.00), following the company's 3Q earnings report. GHL reported EPS of $0.41, missing consensus estimates of $0.42. 4Q16 EPS estimates go up by 43c to $0.53 due to a much higher near-term outlook for advisory revenue that trickles into early 2017, which also drives our 2017 EPS estimates higher by 30c to $1.15.
Analyst Brennan Hawken commented, "GHL reported 3Q EPS of $0.41, beating our estimate of $0.40 but missing consensus of $0.42. Relative to our estimate, operating income missed as lower advisory revenues (8c headwind) were partially offset by lower comp (3c tailwind) and lower non-comp (4c tailwind). However, EPS beat our estimate due to a lower tax rate (3c tailwind) as GHL derived more revenue outside the US. Notably, cash dropped from $63.8 million at 6/30 to $55.8 million at the end of 3Q, but cash outside the US was largely unchanged ($45.1 million at 6/30). Interestingly, the cash dropped despite drawing down another $7.6 million on the revolver in order to prepay $5.6 million in term debt due in October. Consequently, these results do little to ease our longer-term concerns about GHL's balance sheet leverage, limited backlog, and upcoming bonus payments."
Shares of Greenhill closed at $23.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- General Electric (GE) PT Lowered to $35 at UBS Following 4Q Report
- Kansas City Southern (KSU) PT Raised to $110 at Aegis Capital
- Seaport Global Securities Downgrades FMC Corp. (FMC) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!