Greenhill (GHL) PT Bumped to $36.50 at Credit Suisse Amid Cogent Deal; Maintains Lowest Rating

Credit Suisse analyst A. Serrao bumped the price target on Greenhill (NYSE: GHL) to $36.50 (from $34.00) following the Cogent Partners acquisition but maintained an Underperform rating.

Following their deep dive into the merger, they find that Cogent, while the leader in the secondary market, "appears to be losing market share, the secondary industry appears to be closing in on cyclical highs following a gangbuster 2014 and recent Greenhill deals, while large in size, are more importantly small in revenues."

Nonetheless, the firm is raising 2015-2018 estimates to $1.80, $2.03, $2.22 and $2.38 (from $1.58, $1.81, $2.02 and $2.22) and target price to $36.50 (from $34.00) to account for the Cogent deal.

More importantly, however, they believe the revenue target for Cogent when disclosed will be lower than the $46 million generated in 2014 (they are looking for $30-$35 million).

For an analyst ratings summary and ratings history on Greenhill click here. For more ratings news on Greenhill click here.

Shares of Greenhill closed at $39.26 yesterday.

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