LAZ Stock Risk & Deep Value Analysis
Lazard Inc
DVR Score
out of 10
What You Need to Know About LAZ Stock
We analyzed Lazard Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran LAZ through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
LAZ Risk Analysis & Red Flags
What Could Go Wrong
A prolonged global economic slowdown impacting M&A activity and asset valuations could significantly reduce Lazard's Financial Advisory revenue, which was already down 2% YoY in Q1 2026, and depress AUM, leading to lower fee income across its segments, potentially causing a 20%+ decline in overall revenue if severe.
Risk Matrix
Overall
Moderate
Financial
Low
Market
High
Competitive
High
Execution
Medium
Regulatory
Medium
Red Flags
- ⚠
Adjusted diluted EPS declined 25% YoY in Q1 2026, despite strong GAAP EPS growth, indicating potential underlying margin pressures or non-recurring benefits in GAAP figures.
- ⚠
The Financial Advisory segment, Lazard's historically core business, experienced a 2% YoY net revenue decline in Q1 2026, signaling ongoing cyclical headwinds.
- ⚠
The Campbell Lutyens acquisition, while strategic, represents a substantial investment ($460M initial) relative to Lazard's market cap ($4.66B), and carries inherent integration risks.
Upcoming Risk Events
- 📅
Prolonged Global Economic Downturn (H2 2026 - H1 2027): A sustained slowdown could further depress M&A activity, impacting Financial Advisory revenue (already down 2% YoY in Q1 2026), and reduce AUM.
- 📅
Campbell Lutyens Integration Challenges (H2 2026 - FY 2027): Failure to effectively integrate Campbell Lutyens or retain key talent could jeopardize the projected $500 million combined 2027 revenue contribution and damage Lazard's expansion strategy.
When to Reconsider
- 🚪
Exit if quarterly Financial Advisory net revenue drops below $300 million (from Q1's $360M) for two consecutive quarters, indicating a severe and sustained downturn.
- 🚪
Sell if Asset Management AUM growth reverses to negative for two consecutive quarters, coupled with significant net outflows (> $10B/quarter).
- 🚪
Exit if adjusted net income falls below $40 million for two consecutive quarters (Q1 was $47M), indicating severe profitability erosion.
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Investment Thesis
If Lazard successfully integrates Campbell Lutyens, significantly expanding its footprint and leadership in the high-growth private capital advisory market, while concurrently sustaining strong Asset Management AUM growth with positive net inflows (>10% YoY), then its diversified revenue streams and enhanced strategic positioning could lead to a re-rating to 15-18x forward earnings, potentially reaching $65-$75 within 12-18 months. This is bullish because the market may be underestimating the combined power of its strengthened private markets offering and resilient asset management business, which mitigates the cyclicality of its traditional advisory business.
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LAZ Price Targets & Strategy
12-Month Target
$55.00
Bull Case
$67.50
Bear Case
$35.00
Valuation Basis
Based on 13x forward P/E applied to estimated FY2026 adjusted EPS of $4.25 (derived from Q1 2026 adj. EPS and analyst estimates).
Entry Strategy
Consider dollar-cost averaging in the $45-$48 range, which is near current levels and slightly below the average analyst target of $52.56, offering a modest discount.
Exit Strategy
Take partial profits at $60-$65.00; implement a stop-loss order if the price falls below $42.00 (approximately 10-12% below current levels).
Portfolio Allocation
3-5% for moderate risk tolerance
Price Targets & Strategy
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Is LAZ Financially Healthy?
Valuation
P/E Ratio
17.24
Forward P/E
17.74
Profitability
Gross Margin
93.38%
Operating Margin
11.00%
Net Margin
8.41%
Return on Equity
33.28%
Revenue Growth
9.80%
EPS
$2.60
Balance Sheet
Current Ratio
1.67
Quick Ratio
1.57
Debt/Equity
2.42
Total Debt
$2.60B
Cash & Equivalents
$978.35M
Cash Flow
Operating Cash Flow
$488.73M
Free Cash Flow
$430.78M
Other
Beta (Volatility)
1.43
Dividend Yield
4.09%
Does LAZ Have a Competitive Moat?
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Moat Trend
Stable to Expanding
Moat Sources
3 Identified
Lazard's moat is durable due to its strong global brand, established reputation for sophisticated financial advice, and deep, long-standing client relationships built on trust, which are difficult for competitors to replicate quickly. The Campbell Lutyens acquisition expands this moat into the rapidly growing private capital advisory sector.
Moat Erosion Risks
- •Loss of Key Talent: The business is heavily reliant on experienced professionals; departures of senior bankers could erode client relationships and expertise.
- •Reputational Damage: Any major misstep or ethical breach could severely impact the firm's credibility and client trust, directly undermining its brand power moat.
- •Failure to Adapt: Inability to evolve with changing client needs (e.g., demand for tech-enabled solutions, ESG integration) could lead to market share erosion.
LAZ Competitive Moat Analysis
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LAZ Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. Lazard does not typically generate significant retail investor buzz.
Institutional Sentiment
Neutral-Positive. Analyst consensus is 'Hold' with an average target of $52.56, but includes 4 'Buy' ratings. T. Rowe Price Associates, Inc. holds 8.6% of common stock.
Insider Activity (Form 4)
No specific Form 4 insider purchase/sale filings were present in the supplied search results for the last 90 days. T. Rowe Price Associates, Inc. reported 9,601,861 shares, equal to 8.6% of Lazard common stock, in a recent ownership filing.
Options Flow
Normal options activity. No specific unusual options activity indicating institutional positioning was identified in the supplied research.
Earnings Intelligence
Next Earnings
Estimated late July/early August 2026
Surprise Probability
Medium
Historical Earnings Pattern
Lazard's stock price reaction to earnings can be volatile, largely influenced by the performance of capital markets and the outlook for M&A activity. Strong AUM growth and positive advisory trends often lead to rallies, while declines in advisory or adjusted profitability can lead to pullbacks.
Key Metrics to Watch
Competitive Position
Top Competitor
Evercore (EVR)
Market Share Trend
Stable in traditional M&A advisory, gaining ground in private capital advisory through the Campbell Lutyens acquisition, and maintaining strong momentum in Asset Management with positive AUM inflows.
Valuation vs Peers
Lazard typically trades at a discount to pure-play advisory firms like Evercore (EVR) or Moelis & Company (MC) due to its diversified business model (advisory + asset management) and historical growth profile. It may trade at a slight premium to larger diversified financial institutions (e.g., banks) on certain metrics due to higher-margin advisory business.
Competitive Advantages
- •Global Brand Reputation and Trust: Decades of high-profile advisory work foster deep client relationships.
- •Expertise and Human Capital: Highly experienced senior bankers and asset managers provide complex, tailored solutions.
- •Global Network and Reach: Extensive presence across major financial centers facilitates cross-border transactions and diverse client engagement.
Market Intelligence
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What Could Drive LAZ Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Report (estimated late July/early August 2026): Positive Financial Advisory revenue growth (rebound from Q1's -2% YoY) or continued strong Asset Management net inflows (> $5B) could signal improving market conditions.
- •Campbell Lutyens Integration Updates (ongoing through H2 2026): Clear communication on integration progress and early client wins for private capital advisory could validate strategic value.
Medium-Term (6-18 months)
- •M&A Advisory Market Recovery (H1 2027): A sustained rebound in global M&A activity could significantly boost Lazard's Financial Advisory revenue, which typically comprises a large portion of its fees.
- •Campbell Lutyens Revenue Contribution (FY 2027): If Campbell Lutyens contributes its projected $500 million in combined 2027 revenue, it could significantly lift Lazard's overall top line and demonstrate successful diversification.
Long-Term (18+ months)
- •Leadership in Private Capital Advisory (FY 2028-2029): If Lazard, through Campbell Lutyens, becomes a recognized market leader in private capital advisory, it could command a premium valuation multiplier due to exposure to faster-growing private markets.
- •Expansion of ESG-focused Asset Management Products (FY 2028-2029): Development and strong adoption of new sustainable investing strategies within Asset Management could attract significant new AUM and enhance fee margins.
Catalysts & Growth Drivers
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What's the Bull Case for LAZ?
- ✓
Watch quarterly Asset Management net inflows — consistently exceeding $5 billion/quarter signals strong business health and market share gains.
- ✓
Monitor Campbell Lutyens' revenue contribution — exceeding $100 million per quarter by Q4 2026 would validate successful integration and growth execution.
- ✓
Observe Financial Advisory revenue trends — sequential quarter-over-quarter growth for two consecutive quarters would signal a meaningful recovery in the broader M&A market.
Bull Case Analysis
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How Lazard Inc Makes Money
Lazard Inc. is a global financial services company that primarily generates revenue through two core segments: Financial Advisory and Asset Management. In its Financial Advisory business, Lazard advises corporations, partnerships, institutions, governments, and individuals on strategic matters such as mergers and acquisitions, restructurings, capital raising, and shareholder advisory, earning fees for these services. The Asset Management segment provides investment management services to institutional clients, financial intermediaries, and individual investors across a diverse range of equity, fixed income, and alternative investment products, earning fees based on assets under management (AUM) and performance. The business model is highly dependent on market activity, client relationships, and the expertise of its human capital.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Lazard Inc (LAZ)?
As of May 30, 2026, Lazard Inc has a DVR Score of 6.4 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Lazard Inc?
Lazard Inc's market capitalization is approximately $4.8B..
What is the risk level for LAZ stock?
Our analysis rates Lazard Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of LAZ?
Lazard Inc currently has a price-to-earnings (P/E) ratio of 17.2. This is in line with broader market averages.
Does Lazard Inc pay a dividend?
Yes, Lazard Inc pays a dividend with a current yield of approximately 4.09%.
Is Lazard Inc's revenue growing?
Lazard Inc has reported revenue growth of 9.8%. The company is growing at a moderate pace.
Is LAZ stock profitable?
Lazard Inc has a profit margin of 8.4%. The company is profitable but margins are modest.
How often is the LAZ DVR analysis updated?
Our AI-powered analysis of Lazard Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 30, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for LAZ (Lazard Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.