PJT Partners downgraded to Sell from Neutral at UBS

UBS downgraded PJT Partners to Sell from Neutral with a price target of $75, down from $100. The analyst sees limited earnings growth in the near-term due to a “substantial ramp” in deferred comp expense and a “narrow path” to sufficient revenue growth to offset that expense growth. Even giving PJT mid-teens growth in strategic advisory revenue in 2024, it will be hard to grow RX revenues, which will limit overall revenue growth and make comp leverage challenging, the analyst tells investors in a research note. UBS believes PJT is entering a period very reminiscent of 2021, when it struggled to grow revenue.