UBS Downgrades PJT Partners (PJT) to Sell

UBS analyst Brennan Hawken downgraded PJT Partners (NYSE: PJT) from Neutral to Sell with a price target of $75.00 (from $100.00).

The analyst said :"We downgrade PJT to Sell as we see limited earnings growth in the NT due to a substantial ramp in deferred comp expense and a narrow path to sufficient revenue growth to offset that expense growth. Even giving PJT mid-teens growth in strategic advisory revenue in 2024, we believe it will be hard to grow RX revenues, which will limit overall revenue growth and make comp leverage challenging (UBSe total rev growth: +7% in 2024). However, we forecast deferred comp amortization to grow by 27%, which will limit the ability to generate comp leverage (UBSe 2024 adj. comp ratio down 40 bps vs 2023; cons: -220 bps). In short, we believe PJT is entering a period very reminiscent of 2021, when it struggled."

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

Shares of PJT Partners closed at $93.36 yesterday.

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