Keefe Bruyette analyst Matthew Moon kept an Underperform rating on Moelis with a $37 price target after taking over coverage of the name. The analyst is entering 2023 with a market-weight position on the M&A independents group. He sees near-term value in companies with higher relative exposure to hi top three identified themes: U.S.-based M&A, restructuring, and strategically rather than sponsor driven deals. Against this backdrop, Moon’s top picks for the space are Evercore and PJT Partners (PJT). Alternatively, Lazard’s (LAZ) higher relative European M&A exposure as well as continued concerns on its asset management business, Moelis’ (MC) high sponsor exposure, and Greenhill & Co.’s (GHL) continued comp and headcount pressure warrant Underperform ratings, Moon tells investors in a research note. The analyst also offers a "tactical pair-trade idea" of overweight PJT, underweight Perella Weinberg Partners (PWP).
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