UPDATE: Goldman Sachs Upgrades Evercore Partners (EVR) to Conviction Buy
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Goldman Sachs analyst Richard Ramsden upgraded Evercore Partners (NYSE: EVR) from Buy to Conviction Buy with a price target of $162.00 (from $139.00).
The analyst comments "We add Buy-rated EVR to the Americas Conviction List ($162 12-month PT, 16% total return), on our view that the market continues to underestimate EVR’s growth potential given a combination of 1. Upside from EVR leading market position from areas we expect to drive the current M&A cycle (US, large cap and tech in particular). 2. The growing contribution from non M&A advisory products, which we now estimate represent 40%+ of total advisory which we believe will continue to both reduce revenue volatility but also add further growth avenues. 3. Upside optionality from the robust ECM backdrop, as it benefits from the growing fee pool from SPACs (Evercore has the leading market share in SPACs amongst independents). 4. We expect EVR to be able to retain its 300bps margin premium vs. peers, as it scales its banker base and continues to increase productivity. In addition, we see potential upside surprise vs. consensus on capital distributions, due to the stronger earnings we forecast, coupled with a robust cash position. Despite outperformance this year, EVR continues to screen as relatively inexpensive, trading 1x below its historical valuation, and 2.5x below where it traded in the past at this level of forecasted NTM revenue growth."
Shares of Evercore Partners closed at $138.60 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesGoldman Sachs Conviction Buy List, Goldman Sachs, Earnings
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