Nomura Securities Upgrades Greenhill (GHL) to Neutral

Nomura Securities upgraded Greenhill (NYSE: GHL) from Reduce to Neutral with a price target of $49.00 saying further downside is limited.

Analyst Steven Chubak said, "Our Jan. initiation of GHL with a Reduce rating was driven by concerns that: valuation was too rich; fee / market share growth lagged independent peers; and cons. expectations were too lofty. While some of our initial concerns remain, at the current price, dividend support and an improving 2Q backlog suggest that risk / reward is more balanced. Our analysis of GHL’s backlog indicates that, despite few deal completions in 1Q, prospects are shaping up better for 2Q. While 1Q IB/trading results will be disappointing, M&A will likely emerge as one of the few bright spots. While we believe GHL remains a compelling relative short vs. peers (LAZ, EVR), with little absolute downside at current levels, we are upgrading to Neutral, with our TP unchanged at $49."

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 $48.05 yesterday.

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