Houlihan Lokey resumed with a Market Perform at Keefe Bruyette

Keefe Bruyette analyst Michael Brown resumed coverage of Houlihan Lokey (HLI) with a Market Perform rating and $127 price target. The firm resumed coverage of the merger and acquisition independent advisors with Lazard (LAZ) and Perella Weinberg Partner (PWP) as top picks. Keefe’s estimates are above the Street on both names and it sees “more room to run with further re-rating potential.” The market is more fully pricing the other stocks to perfection relative to fundamentals, the analyst tells investors in a research note. The firm is not bullish on the stocks broadly speaking, saying the group has pulled forward expectations and trades at a rich valuation compared to recent historical levels. Thus, “picking spots is important,” contends Keefe.