Evercore's Valuation Discount to Peers Could Narrow, Deutsche Bank Says

MT Newswires Live01:37

Evercore's (EVR) valuation "discount to peers" could narrow as continued "revenue momentum," advisory market-share gains, stable margins and moderating non-compensation cost growth support a re-rating of the shares, Deutsche Bank said in a report Friday.

Evercore shares are down about 15% this year, compared with an 11% decline for the peer group, with much of the "underperformance" following the company's Q2 results in late July. The stock now trades at about 13 times 2027 consensus earnings, a 10% to 15% "discount to peers" versus a historical discount of 3% to 5%, according to the note.

Deutsche Bank said concerns about a "late cycle" environment, below-average earnings growth expectations and structurally "higher cost ratios" have weighed on the shares, the note added.

Deutsche Bank has a buy rating on Evercore with a price target of $375.

Price: 296.27, Change: -0.64, Percent Change: -0.22

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