PJT Partners initiated with a Neutral at UBS

UBS initiated coverage of PJT Partners with a Neutral rating and $84 price target. The analyst believes PJT is making the appropriate long-term decision in terms of broadening its industry coverage, but says the return on those investments haven’t been as clear, with partner productivity metrics relatively flat and estimated fixed costs rising mid-teens per annum. Further, given PJT’s lean towards large-cap M&A, which typically has longer deal timelines and are more cyclical, a significant revenue inflection in the near-term seems unlikely, the analyst tells investors in a research note.