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Lazard (LAZ) has expanded its Financial Advisory business in Europe by appointing Dr. Marco Superina to lead investment banking for Switzerland, strengthening its presence across the wider DACH region.

See our latest analysis for Lazard.

Lazard’s recent hire in Switzerland comes as the stock trades at US$43.75, with the share price falling 12.04% year to date and the 1 year total shareholder return declining 14.87%, despite a 54.03% total shareholder return over three years that points to stronger longer term momentum than the recent 90 day share price pullback of 3.63% suggests.

If this kind of corporate advisory story has your attention, it can be a good moment to broaden your watchlist with other finance related opportunities such as 21 top founder-led companies

Lazard’s share price has slipped this year even as its advisory footprint in Europe grows and the stock trades below some value estimates. Is more of the potential upside still ahead, or is it already in the rear view mirror as you assess valuation next?

Most Popular Narrative: 9.8% Undervalued

The most followed narrative for Lazard pegs fair value at $48.50 against a last close of $43.75, suggesting some gap between price and those assumptions.

Lazard’s diversification in M&A, non-M&A, and global operations allows the firm to adapt to changing market conditions and capture opportunities across different regions, potentially stabilizing revenues amidst economic uncertainties.

Growth in Lazard’s financial advisory backlog, particularly in Europe, combined with a diversified business model across geographic and product lines, could buoy revenues even if specific markets face challenges.

Read the complete narrative. Read the complete narrative.

Want to see what is driving that $48.50 fair value for Lazard? The narrative leans heavily on expectations for future revenue expansion, rising margins and a different earnings multiple than today. Curious which of those assumptions does the heavy lifting in the model and how sensitive that fair value is to small changes in the forecasts?

Result: Fair Value of $48.50 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, Lazard’s expansion into new regions and products could lift costs faster than revenue, and a higher required return assumption may also put pressure on the current narrative.

Find out about the key risks to this Lazard narrative.

Next Steps

Given the mix of optimism and caution around Lazard, now may be a suitable moment to review the full picture yourself and decide whether to act. Start by weighing the 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond Lazard?

If Lazard has you thinking harder about where to put your money to work next, do not stop with a single stock. The right mix of ideas can reshape your portfolio over time and you do not want to miss what focused stock lists can surface.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LAZ.

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