Lazard (LAZ) Expands Buyback Plan, Is The Stock Still A Bargain?
Lazard (LAZ) drew investor attention after reporting second quarter 2026 net income of $4.81 million, alongside an expanded share repurchase authorization and an affirmed quarterly dividend of $0.50 per share.
See our latest analysis for Lazard.
At a share price of $44.35, Lazard has seen a 1 month share price return of 10.54%, even though the 3 month share price return is down 10% and the 1 year total shareholder return is down 15.88%. This may hint that recent buyback and dividend announcements are shifting sentiment after a weaker quarter.
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Lazard has already bounced on the buyback and dividend news, but the stock is still trading below some valuation estimates. Has most of the easy upside already played out, or does the current price still leave meaningful room?
Most Popular Narrative: 8.6% Undervalued
The most followed narrative for Lazard puts fair value at $48.50, compared with the latest close of $44.35, and builds its case on growth, margins, and a higher discount rate.
Lazard's diversification in M&A, non-M&A, and global operations allows the firm to adapt to changing market conditions and capture opportunities across different regions, potentially stabilizing revenues amidst economic uncertainties. Growth in Lazard's financial advisory backlog, particularly in Europe, combined with a diversified business model across geographic and product lines, could buoy revenues even if specific markets face challenges.
Want to see what is baked into that fair value for Lazard? The narrative leans on faster earnings growth, fatter margins, and a future earnings multiple that is lower than many peers. Curious how those moving parts combine into one valuation line?
Result: Fair Value of $48.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Lazard's push into the Middle East and broader ETF build out could keep expenses elevated. As a result, any slower revenue contribution may quickly test this undervalued narrative.
Find out about the key risks to this Lazard narrative.
Next Steps
If this Lazard story feels finely balanced between concern and optimism, consider taking action while the facts are fresh and build your own view using the 3 key rewards and 3 important warning signs
Looking for more investment ideas beyond Lazard?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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