Houlihan Lokey Intrinsic Value Calculation – UBS Group Raises Price Target and Gives “Buy” Rating to Houlihan Lokey in Latest Research Report
October 15, 2024
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Houlihan Lokey ($NYSE:HLI) is a global investment bank and financial services company that specializes in advising clients on mergers and acquisitions, capital markets, financial restructuring, and valuation. In a recent research report, UBS Group has raised their price target for Houlihan Lokey from $170.00 to $190.00. This is a significant increase from their previous target and reflects the strong performance and potential growth of the company. UBS Group also assigned the stock a “buy” rating, indicating their confidence in the company’s future prospects. One of the key factors contributing to UBS Group’s positive outlook on Houlihan Lokey is its strong financial performance. The company has consistently delivered strong earnings and revenue growth over the years, demonstrating its ability to weather economic downturns and adapt to changing market conditions. Furthermore, Houlihan Lokey has a diversified client base and operates in multiple geographies, providing it with a strong foundation to sustain its growth.
The company is known for its highly skilled and experienced team of professionals who provide strategic advice and execution capabilities to its clients. This has earned Houlihan Lokey a strong reputation and trust among its clients, which further strengthens its competitive advantage. Furthermore, with the increasing trend of mergers and acquisitions in the market, Houlihan Lokey is well-positioned to benefit from this trend. The company’s strong track record and expertise in handling complex deals make it an attractive option for companies looking for financial advisory services. In conclusion, UBS Group’s recent research report has given a bullish outlook for Houlihan Lokey, highlighting its strong financial performance, industry expertise, and potential for growth. With a higher price target and a “buy” rating, investors may view this as a positive sign and consider adding Houlihan Lokey to their investment portfolio.
Market Price
On Wednesday, financial services firm UBS Group released a new research report on Houlihan Lokey, a leading global investment banking company. According to the report, on Wednesday, the stock for Houlihan Lokey opened at $164.6 and closed at $166.27. This represents a 1.48% increase from the previous closing price of $163.85. This positive movement in the stock price can be attributed to UBS Group’s endorsement of the company. A price target is an estimate of a stock’s future value, and a higher target suggests that the company is expected to perform well in the coming months. This is good news for investors and shareholders of Houlihan Lokey, as it signals potential gains in their investments.
A “buy” rating means that the stock is recommended for purchase, indicating that UBS Group believes it is undervalued and has the potential to provide strong returns for investors. Houlihan Lokey is a global investment banking firm that offers a range of financial advisory services to clients worldwide. Their expertise in mergers and acquisitions, capital markets, and restructuring has solidified their position as a leader in the industry. With UBS Group’s support and positive outlook on the company’s future, Houlihan Lokey’s stock is poised for continued success in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Houlihan Lokey. More…
| Total Revenues | Net Income | Net Margin |
| 1.84k | 258.88 | 14.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Houlihan Lokey. More…
| Operations | Investing | Financing |
| 331.44 | -3 | -240.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Houlihan Lokey. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.96k | 1.19k | 25.59 |
Key Ratios Snapshot
Some of the financial key ratios for Houlihan Lokey are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.5% | 1.4% | 19.1% |
| FCF Margin | ROE | ROA |
| 14.1% | 12.8% | 7.4% |
Analysis – Houlihan Lokey Intrinsic Value Calculation
As a financial analyst, I have closely examined HOULIHAN LOKEY‘s financials and have come to some key conclusions. Firstly, based on our proprietary Valuation Line, the fair value of HOULIHAN LOKEY share is estimated to be around $88.7. This calculation takes into account various financial factors such as revenue, earnings, and cash flow. However, currently, the stock price for HOULIHAN LOKEY is trading at $166.27, which indicates an overvaluation of 87.5%. This significant overvaluation could be a cause for concern for potential investors, as it may lead to a correction in the stock price in the future. Looking at the company’s financials, HOULIHAN LOKEY has shown strong performance in terms of revenue and earnings growth in recent years. However, it is important to note that the company’s valuation may also be influenced by external factors such as market sentiment and industry trends. As a financial analyst, I would recommend conducting further research and analysis to gain a deeper understanding of the company’s future prospects before making any investment decisions. In conclusion, while HOULIHAN LOKEY has shown strong financial performance, investors should carefully consider the current overvaluation of the stock before making any investment decisions. It is important to weigh the potential risks and rewards and conduct thorough research before making any investment decisions. More…
Peers
The company competes with Hatcher Group Ltd, Ontic Finserve Ltd, and Harmony Capital Services Ltd.
– Hatcher Group Ltd ($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
UBS Group has raised their price target for Houlihan Lokey to $190.00, indicating their confidence in the stock’s potential. This increase comes with a “buy” rating, suggesting that the stock is expected to outperform in the market. Investors may take this as a positive sign and consider investing in Houlihan Lokey.
However, it should be noted that this analysis is based on the stock’s potential and does not provide any background information on the company itself. It is important for investors to conduct their own research and consider other factors before making any investment decisions.
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