Goldman Sachs analyst Alexander Blostein has reiterated their neutral stance on HLNE stock, giving a Hold rating on January 24.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding Hamilton Lane’s (HLNE) stock performance and future prospects.
On one hand, Meacham acknowledges the positive momentum in HLNE’s Private Wealth segment, particularly noting the substantial inflow of capital in the retail channel and the successful additions to new Wirehouse platforms. He also highlights the promising signs of a significant final close for HLNE’s Secondary VI flagship fund. On the flip side, the report suggests that the costs associated with the ramp-up in the Wirehouse channel are likely to offset margins in the short term. Furthermore, while Meacham projects modest improvements in future fee-related earnings (FRE) margins, he anticipates only a slight expansion over the next couple of years. The current valuation of the stock at 24 times the adjusted 2025 estimated price-to-distributable earnings (P/DE) is deemed fair by the analyst, implying that the stock price adequately reflects the company’s potential earnings and growth prospects, leaving limited room for significant upside. This balanced view between the positive momentum in fundraising and the tempered margin expansion, coupled with a valuation that seems to fully price in these factors, leads Meacham to maintain a Neutral rating on HLNE with an updated price target that reflects the improved pace of fundraising.
In another report released on January 24, Morgan Stanley also maintained a Hold rating on the stock with a $126.00 price target.
See the top stocks recommended by analysts >>
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HLNE in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Hamilton Lane (HLNE) Company Description:
Hamilton Lane, Inc. is a holding company, which engages in the provision of private markets investment solutions. The firm works with clients to conceive, structure, build out, manage, and monitor portfolios of private markets funds and direct investments. It also offers the following solutions: customized separate accounts; specialized funds; advisory services; distribution management; and reporting, monitoring, data, and analytics. The company was founded in 1991 and is headquartered in Bala Cynwyd, PA.
Read More on HLNE:
- HAMILTON LANE INCORPORATED REPORTS THIRD QUARTER FISCAL 2024 RESULTS, WITH MANAGEMENT & ADVISORY FEES GROWING BY 17% AND ASSETS UNDER MANAGEMENT GROWING BY 12% YEAR-OVER-YEAR
- Hamilton Lane Inc (HLNE) Q3 Earnings Cheat Sheet
- Hamilton Lane price target raised to $126 from $102 at Morgan Stanley
- Oppenheimer downgrades Blackstone, Hamilton Lane after 2023 rally
- Hamilton Lane downgraded to Perform from Outperform at Oppenheimer
