Houlihan Lokey Continues to Impress as Seaport Global Securities Labels it a ‘Unique Growth Story’ with Neutral Rating

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Houlihan Lokey ($NYSE:HLI) is a leading global investment bank and financial advisory firm that provides a wide range of services to corporations, institutions, and governments. Recently, Seaport Global Securities reaffirmed their Neutral stock rating for Houlihan Lokey, citing the company as a “unique growth story.” This comes as no surprise, as Houlihan Lokey has consistently impressed investors with its strong financial performance and strategic initiatives. One of the key factors that Seaport Global Securities highlighted in their analysis is the projected rise in Houlihan Lokey’s earnings per share (EPS) in FY2025E and FY2026E. This upward trend is a strong indicator of the company’s potential for growth and further solidifies its position as a promising investment opportunity.

Moreover, Houlihan Lokey’s diverse portfolio of services and global presence has allowed it to weather economic uncertainties and continue to deliver strong results. The company’s ability to adapt to changing market conditions and constantly evolving client needs has been a major factor in its success. This may be due to potential risks and challenges that could impact the company’s future performance. Nevertheless, this rating also reflects the analyst’s recognition of Houlihan Lokey as a solid and well-managed company that presents a unique opportunity for growth.

Earnings

This comes after the company’s earnings report for the third quarter of FY2024, ending December 31, 2021. In this report, it was revealed that Houlihan Lokey earned a total revenue of 888.8M USD and a net income of 173.74M USD. These impressive numbers represent a significant increase of 94.7% in total revenue and 175.6% in net income compared to the previous year. This growth demonstrates the company’s strong performance and solid financial standing.

Moreover, this is not the first time that Houlihan Lokey has shown remarkable growth. In the last three years, the company’s total revenue has increased from 888.8M USD to 511.13M USD, a testament to their consistent success and ability to adapt to changing market conditions. The company’s consistent growth and strong financial performance make it an attractive option for investors.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Houlihan Lokey are shown below. More…

Market Price

On Friday, the stock for HOULIHAN LOKEY opened at $174.5 and closed at $171.31, showing a slight decrease of 0.85% from its previous closing price of $172.77. Despite this slight dip, the company has been receiving positive recognition from analysts at Seaport Global Securities, who have labeled it a “unique growth story” with a neutral rating. This assessment by Seaport Global Securities is significant as it reflects the investment firm’s confidence in HOULIHAN LOKEY’s future prospects. Being labeled as a “unique growth story” indicates that the company has something special to offer and stands out in the market. This is a positive sign for investors, who are always on the lookout for companies with potential for growth. A neutral rating suggests that the stock is expected to perform in line with the overall market and may not experience significant fluctuations in price. This may be seen as a less favorable rating compared to a buy or strong buy recommendation.

Despite this, HOULIHAN LOKEY has been consistently impressing investors and analysts with its performance. The company, which provides financial advisory and investment banking services, has seen its stock price steadily increase over the past year. This is a testament to its strong business model and ability to weather economic downturns. The company recently announced plans to open a new office in Japan, further strengthening its foothold in the Asia-Pacific region. This move demonstrates the company’s commitment to expanding its reach and tapping into new markets. As the company continues to expand and diversify its services, it will likely attract even more positive attention from the market. Live Quote…

Analysis

After thoroughly examining the fundamentals of HOULIHAN LOKEY, I have come to the conclusion that it is a ‘rhino’ company, meaning it has achieved moderate revenue and earnings growth. This classification indicates that HOULIHAN LOKEY is a strong, established company with potential for future growth. Based on its star chart, HOULIHAN LOKEY has strong ratings in growth and profitability, meaning it has been able to consistently increase its revenue and earnings over time. However, it falls in the medium category in terms of assets and is weak in terms of dividend. This suggests that HOULIHAN LOKEY may be more attractive to investors who prioritize growth potential over immediate returns. Additionally, HOULIHAN LOKEY has a high health score of 9/10 when it comes to its cashflows and debt. This indicates that the company is capable of sustaining its operations even in times of crisis. This may make it an appealing investment option for risk-averse investors who value stability and long-term sustainability. Its strong financial health and potential for future growth make it an attractive option for a variety of investors. More…

Peers

The company competes with Hatcher Group Ltd, Ontic Finserve Ltd, and Harmony Capital Services Ltd.

– Hatcher Group Ltd ($SEHK:08365)

The Watcher Group Ltd is a publicly traded company with a market capitalization of 306.51 million as of 2022. The company has a negative return on equity of -0.0%. The Watcher Group Ltd is engaged in the business of providing security solutions and services. The company offers a range of services including security consulting, security system design and installation, and security system monitoring and maintenance.

– Ontic Finserve Ltd ($BSE:540386)

Ontic Finserve Ltd is a company that provides financial services. It has a market capitalization of 167.41 million as of 2022 and a return on equity of 2.87%. The company offers services such as banking, lending, and investment management. It has a strong presence in the United Kingdom and the United States.

– Harmony Capital Services Ltd ($BSE:530055)

Harmony Capital Services Ltd is a financial services company that provides capital markets and investment banking services. The company has a market cap of 16.69M as of 2022 and a Return on Equity of -1.9%. The company’s main business activities include providing capital markets and investment banking services to clients in the United Arab Emirates and the Middle East region.

Summary

Seaport Global Securities recently maintained a Neutral rating on financial advisory firm Houlihan Lokey, citing the company’s unique growth story. The analyst noted an increase in projected earnings for FY2025 and FY2026, which could potentially make the stock a more attractive investment opportunity in the future. However, the Neutral rating suggests that there may be some factors holding the company back from a more positive outlook. Overall, this analysis shows that despite being a strong performer, there may still be some caution surrounding Houlihan Lokey’s potential for growth and profitability in the long term.