Houlihan Lokey (HLI) Capital Raise Suggest Sizeable Acquisition Opportunity - Morgan Stanley

Morgan Stanley analyst Manan Golsalia reiterated Equal-Weight rating and a $62.00 price target on Houlihan Lokey Inc, (NASDAQ: HLI) citing the company's recent announcement that an additional 3 million shares of common stock will be issued, representing an issuance of $139M, implying that proceeds from said surplus will be used for future acquisitions. Future acquisitions are speculatory, including building out in new industries, as well as expanding and reaffirming the value of the company.

The analysis stated "We believe this capital raise suggests that HLI sees a strong opportunity to potentially do one sizable or several smaller acquisitions in the coming months. Since there are no mandated capital levels that HLI has to meet, the capital raise suggests HLI may be building cash reserves so that they can potentially move quickly when the opportunity arises."

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

Shares of Houlihan Lokey closed at $63.19 yesterday.

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