Wolfe Research has increased the price target for Evercore (EVR, Financial) from $237 to $331, maintaining an Outperform rating on the stock. The firm expresses strong confidence in recommending alternative asset managers over merger and acquisition brokers as a strategic response to the positive trends in capital markets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Evercore Inc (EVR, Financial) is $247.88 with a high estimate of $312.00 and a low estimate of $194.00. The average target implies an downside of 15.51% from the current price of $293.39. More detailed estimate data can be found on the Evercore Inc (EVR) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Evercore Inc's (EVR, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Evercore Inc (EVR, Financial) in one year is $200.65, suggesting a downside of 31.61% from the current price of $293.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Evercore Inc (EVR) Summary page.
EVR Key Business Developments
Release Date: April 30, 2025
- Net Revenues (GAAP): $695 million for Q1 2025.
- Operating Income (GAAP): $111 million for Q1 2025.
- EPS (GAAP): $3.48 per share for Q1 2025.
- Adjusted Net Revenues: $700 million, a 19% increase year-over-year.
- Adjusted Operating Income: $116 million, a 28% increase year-over-year.
- Adjusted EPS: $3.49, a 64% increase year-over-year.
- Adjusted Operating Margin: 16.6%, up from 15.4% in the prior year period.
- Adjusted Advisory Fees: $557 million, a 29% increase year-over-year.
- Underwriting Revenues: $54 million, down 2% year-over-year.
- Commissions and Related Revenue: $55 million, a 14% increase year-over-year.
- Adjusted Asset Management and Administration Fees: $22 million, an 8% increase year-over-year.
- Adjusted Compensation Ratio: 65.7%, down 30 basis points from the prior year period.
- Non-Compensation Expenses: $124 million, up 14% year-over-year.
- Adjusted Tax Rate: Negative 39.7%, including a $78 million benefit related to RSUs.
- Cash and Investment Securities: Nearly $1.4 billion as of March 31, 2025.
- Capital Returned: $454 million through share repurchases and dividends.
- Dividend Declared: $0.84 per share, a 5% increase from the prior dividend.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Evercore Inc (EVR, Financial) delivered strong year-over-year growth across nearly all areas, with more than 50% of total revenues from non-M&A sources.
- The company announced several significant transactions in the first quarter, including advising on Calpine's $29.1 billion sale of Constellation Energy.
- Evercore's private capital advisory group had a record first quarter, leading in GP-led continuation vehicles and achieving a record in LP secondaries.
- The equities franchise had its strongest first quarter since 2020, driven by market volatility and increased trading volumes.
- Evercore returned a record amount of capital to shareholders in the quarter, demonstrating a strong commitment to shareholder value.
Negative Points
- Heightened geopolitical and trade tensions have increased volatility in global financial and asset markets, impacting CEO and Board confidence levels.
- The broader transaction environment is affected by market complexity and uncertainty, leading to a cautious approach from clients.
- First quarter underwriting revenues were down 2% from the previous year, reflecting lower levels of follow-on activity.
- The adjusted compensation ratio for the first quarter was 65.7%, which may prove challenging to improve in the current environment.
- Non-compensation expenses increased by 14% year-over-year, driven by vendor rate increases and IT spend due to headcount growth.
