James Yaro, an analyst from Goldman Sachs, maintained the Sell rating on Perella Weinberg Partners (PWP – Research Report). The associated price target is $12.00.
James Yaro has given his Sell rating due to a combination of factors involving Perella Weinberg Partners’ earnings and growth outlook. Despite a strong fourth quarter in 2023 with earnings surpassing consensus expectations and a substantial increase in revenue, Yaro remains cautious about the firm’s future earnings per share (EPS) growth. His concern stems from the stagnation in the number of advisory partners year-over-year and the lack of clear improvements in the compensation ratio. Furthermore, ongoing dilution from restricted stock unit (RSU) and performance stock unit (PSU) unlocks, paired with uncertainty around share buyback plans, contribute to the apprehensive outlook.
Additionally, while the management of Perella Weinberg Partners highlights a record level of M&A announcements and backlogs, the elongated timeline for deal completions poses a near-term challenge to revenue. Yaro also notes that the company’s net advisory partner headcount has not increased, contrasting with the growth in senior banker numbers seen among peers. This could potentially lead to less revenue growth for Perella Weinberg Partners compared to its competitors from 2023 to 2025. Despite a slight increase in revenue and EPS estimates for the coming years, these concerns underpin Yaro’s decision to maintain a Sell rating on the stock.
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Based on the recent corporate insider activity of 30 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 PWP in relation to earlier this year.
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Perella Weinberg Partners (PWP) Company Description:
FinTech Acquisition Corp IV is a blank check company.
Read More on PWP:
- Perella Weinberg Reports Full Year and Fourth Quarter 2023 Results
- Perella Weinberg Partners reports Q4 adjusted EPS 8c, consensus 4c
- PWP Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- 3 Best Stocks to Buy Now, 1/29/2024, According to Top Analysts
- Perella Weinberg Partners resumed with an Outperform at Keefe Bruyette
