Ticonderoga Reiterates a 'Buy' on Evercore Partners (EVR); Reports Solid Q1 - M&A Activity Picking Up
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Price: $307.38 -1.62%
Rating Summary:
13 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga reiterates a 'Buy' on Evercore Partners (NYSE: EVR), PT $37.
Ticonderoga analyst said, "EVR has been named an advisor to $21bn in deals so far in Q2 (including the $7.9bn Exelon deal this morning) and is estimated to have closed over $45bn in April alone. Management noted that they were recently retained in one of the more significant restructuring transactions that they have worked on (client was not named and it is not in our numbers); EVR advised AIG (NYSE: AIG) and GM (NYSE: GM) so their standards are high and the largest fee earned in Q1 was from a restructuring transaction, so fees can be significant. Management also noted that through the end of April, revenue per partner was running at $10.2mm over the trailing 12 months; this is the highest level in a few years and compares to roughly $7mm at the end of March '11 and December '10."
"Equities and Asset Management Still on Track - The equities business had another quarter of sequential revenue growth while operating costs declined to $6mm from $8.6mm in Q4; management reiterated their breakeven target for Q4'11. In addition, asset management was profitable for the second consecutive quarter. We think the risks around both business buildouts has dissipated materially in recent quarter; this has been a key risk to shares."
"We are lowering our 2011 EPS estimate to $1.77 from $1.84 previously; the majority of the revision is driven by the $0.05 miss vs. our Q1'11 EPS estimate this morning (EVR reported EPS of $0.28 for Q1'11)."
For more ratings news on Evercore Partners click here and for the rating history of Evercore Partners click here.
Shares of Evercore Partners closed at $34.10 yesterday.
Ticonderoga analyst said, "EVR has been named an advisor to $21bn in deals so far in Q2 (including the $7.9bn Exelon deal this morning) and is estimated to have closed over $45bn in April alone. Management noted that they were recently retained in one of the more significant restructuring transactions that they have worked on (client was not named and it is not in our numbers); EVR advised AIG (NYSE: AIG) and GM (NYSE: GM) so their standards are high and the largest fee earned in Q1 was from a restructuring transaction, so fees can be significant. Management also noted that through the end of April, revenue per partner was running at $10.2mm over the trailing 12 months; this is the highest level in a few years and compares to roughly $7mm at the end of March '11 and December '10."
"Equities and Asset Management Still on Track - The equities business had another quarter of sequential revenue growth while operating costs declined to $6mm from $8.6mm in Q4; management reiterated their breakeven target for Q4'11. In addition, asset management was profitable for the second consecutive quarter. We think the risks around both business buildouts has dissipated materially in recent quarter; this has been a key risk to shares."
"We are lowering our 2011 EPS estimate to $1.77 from $1.84 previously; the majority of the revision is driven by the $0.05 miss vs. our Q1'11 EPS estimate this morning (EVR reported EPS of $0.28 for Q1'11)."
For more ratings news on Evercore Partners click here and for the rating history of Evercore Partners click here.
Shares of Evercore Partners closed at $34.10 yesterday.
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