Jun. 23 at 7:59 AM
Morgan Stanley Upgrades
$EVR to Overweight from Equalweight, Raises PT to
$312 from
$175; cites strength in large-cap deal flow and PCA momentum
Analyst comments: "Evercore is most skewed to large-cap deals among our coverage and should benefit most from a more transparent and predictable antitrust approach. More than 30% of 2017–2019 deal revenues were skewed to deals over
$5 billion in value, and over 70% to deals over
$1 billion. In 2021, EVR’s skew to
$5 billion-plus deals was over 40% and
$1 billion-plus over 80%, highlighting EVR’s ability to partake in large deals when such deals rebound. This year, EVR advised on three of the top six mergers.
EVR's market-leading Private Capital Advisory (PCA) business is firing on all cylinders: PCA revenues in 1Q25 drove a 127% EPS beat. We think more PCA-driven beats are ahead, given EVR’s strength across both general partner and limited partner advisory, structural demand for liquidity and continuation funds, and EVR’s exploration of adding new products like collateralized fund obligations and how to play retail. EVR’s leading edge here is having been early to the space and having invested in the right talent with ambitious, creative leadership."
Analyst: Ryan Kenny
