Evercore downgraded to Neutral from Buy at UBS

UBS downgraded Evercore to Neutral from Buy with a price target of $176, up from $160. The stock’s recent outperformance and multiple re-rating is pricing in a much better operating environment in fiscal 2024 than what is likely given the slowly improving backdrop for mergers and acquisitions, the analyst tells investors in a research note. Although industry announcements have rebounded off their lows, deal timelines remain elongated and sponsor activity “comparatively muted,” which raises the risk that near-term fee generation won’t be sufficient to alleviate Evercore’s “already elevated comp ratio,” says UBS.