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    Lazard (LAZ) Could Be 11% Undervalued As Earnings Raise Fresh Valuation Questions

    Simply Wall St·10/31/2026 01:28:57
    語音播報

    Fresh earnings are doing the talking for Lazard (LAZ). The advisory and asset management firm reported third quarter net income of US$29.16 million and basic earnings per share of US$0.27, both lower than a year earlier.

    Lazard shares have been choppy, with the 1-day share price return falling 3.01% to US$38.35 after the earnings release, even though the 30-day share price return is up 5.85%. Over a longer horizon, the 3-year total shareholder return of 50.20% contrasts with a 1-year total shareholder return that is down 18.09%, pointing to momentum that has cooled as profitability concerns and the recent dividend declaration reset expectations.

    Seize this earnings reset as a chance to broaden your watchlist with advisory and asset management peers flagged in our 18 high quality undiscovered gems.

    Lazard now trades at a price that sits below both analyst targets and one intrinsic value estimate. The real puzzle is where fair value actually lies after this earnings reset.

    Most Popular Narrative: 11% Undervalued

    On the most followed view, Lazard carries a fair value of $42.88, a shade above the last close at $38.35, which keeps the spotlight firmly on how future earnings play out against that gap.

    The combination of Lazard's existing private capital advisory business with Campbell Lutyens into Lazard CL, with anticipated revenue of about US$500 million in 2027 and a higher share of advisory revenue tied to private capital, points to a larger fee pool that could lift advisory revenue and earnings.

    The shift in Financial Advisory revenue mix toward roughly 40% tied to private capital today, with an expectation of reaching about 50% after the Campbell Lutyens transaction closes, indicates a more diversified model that could support more stable advisory revenue and margins.

    See why 4 investors see Lazard as 11% undervalued.

    Result: Fair Value of $42.88 (UNDERVALUED)

    Still, the thesis can unravel if Lazard's compensation ratio stays elevated or if assets under management stagnate, which would leave fee income and earnings under pressure.

    Find out about the key risks to this Lazard narrative.

    Next Steps

    Mixed messages around Lazard can create noise. Move quickly to check the full picture of risks and rewards for yourself with 2 key rewards and 4 important warning signs.

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