Lazard (NYSE: Los) had poor performance in stock price investing in 2022 Banking The department backed off. The stock closed at $35, about 35% below its 2021 high. Its total market capitalization fell to $2.9 billion. Other boutique investment banks such as Houlihan Lokey, Moilis and Evercore also fell.
Investment banking difficulties
Lazard is one of the largest boutique firms in the United States. The company offers its business through its financial advisory and asset management solutions. Its financial advisory business includes services such as mergers and acquisitions, restructurings, capital structuring and capital raising.
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Lazard faces two major challenges in 2022. First, the M&A industry suffered its biggest decline in years. Overall, the volume of M&A deals fell below $2 trillion worldwide. More than 22,000 companies announced deals.
Second, Lazard suffered as its total assets under management declined. The company’s AUM fell from $258 billion in January 2022 to $221 billion in November, its financial statements showed. November’s figure was better than October’s $204 billion.
However, the company, known for its smart people, performed modestly in 2022. In the latest quarter, its operating income rose to $724 million, while its operating income for the year to September fell just 3% to $2.1 billion.
Its strong performance was helped by increased deals in Europe, where the company advised several high-profile deals. This was offset by a decline in asset management restructuring. I wrote my Article At Houlihan Lokey, Lazard could benefit from increased demand for restructuring. In a recent statement, the company’s CEO said:
“We are seeing an increase in client conversations around restructuring and liability management. The energy transition continues to drive contract activity in sectors less impacted by the business cycle.
Also, its total assets under management are increasing, meaning its asset management business is bottoming out. Remember as I wrote in other place, Lazard has previously experienced similar declines during the Global Financial Crisis (GFC).
Lazard stock price forecast
The 4H chart shows that Lazard stock price has pulled back over the past few weeks. It has moved below the 25-day and 50-day moving averages. The two averages have also formed a bearish crossover. It has moved below the critical resistance point at $40.
Therefore, the LAZ stock price will continue to fall in the first quarter and will continue its upward trend after the start of the Fed pivot.