In the latest quarter, 4 analysts provided ratings for Houlihan Lokey (NYSE:HLI), showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 0 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $147.25, a high estimate of $157.00, and a low estimate of $139.00. This current average reflects an increase of 4.25% from the previous average price target of $141.25.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Houlihan Lokey is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Manan Gosalia | Morgan Stanley | Raises | Equal-Weight | $148.00 | $131.00 |
| Michael Brown | Keefe, Bruyette & Woods | Raises | Market Perform | $139.00 | $132.00 |
| Brennan Hawken | UBS | Raises | Buy | $157.00 | $145.00 |
| Brennan Hawken | UBS | Lowers | Buy | $145.00 | $157.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Houlihan Lokey. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Houlihan Lokey compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Houlihan Lokey's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into Houlihan Lokey's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Houlihan Lokey analyst ratings.
About Houlihan Lokey
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
Houlihan Lokey: Financial Performance Dissected
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Houlihan Lokey's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 17.02% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Houlihan Lokey's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.58% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Houlihan Lokey's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.5%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Houlihan Lokey's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.65% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Houlihan Lokey's debt-to-equity ratio is below the industry average. With a ratio of 0.23, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Core of Analyst Ratings: What Every Investor Should Know
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.