Keefe Bruyette's Fresh Endorsement Signals Renewed Optimism for the Global Advisory Powerhouse

Lazard, Inc. (LAZ) has long stood as a pillar of global financial advisory and asset management, with a business model rooted in high-touch M&A, restructuring, and an institutional client base that spans the globe. Today, the narrative around Lazard shifted meaningfully as Keefe Bruyette, a top-tier specialist in financial services analysis, upgraded the stock from "Market Perform" to "Outperform" and raised its price target to $65.

This move is notable for sophisticated investors: not only does it imply a double-digit potential upside from current levels, but it also arrives as Lazard is gaining momentum across both advisory and asset management segments. Analyst upgrades—especially from sector specialists like Keefe Bruyette—often precede institutional inflows and renewed market attention, making them critical signals for portfolio positioning.

Key Takeaways

• Potential Upside: Keefe Bruyette’s new $65 price target represents a 16% upside from the current price of $56.10.

• Stock Performance: LAZ has rallied 19% over the past three months, outpacing sector averages and moving near yearly highs.

• Recent News Drivers: Key gains in assets under management (AUM), strong net inflows, and positive market sentiment have fueled recent performance.

• Technical Strength: LAZ is trading above key moving averages and exhibits a strong RSI, signaling bullish technical momentum.

• Analyst Credibility: Keefe Bruyette’s focused expertise in financials lends significant weight to their bullish stance.

Keefe Bruyette’s Upgrade: Why It Matters for Investors

Analyst Firm Reputation and Upgrade Details

Keefe Bruyette & Woods (KBW) is renowned for its deep sector focus on banks, asset managers, and advisory firms. Their analysts have a track record of prescient calls in financials, with institutional investors often tracking their moves closely. Today’s upgrade to "Outperform"—accompanied by a fresh $65 price target—signals high conviction that Lazard is poised to outperform peers and the broader market.

KBW’s confidence aligns with Lazard’s robust business model and recent operational momentum.

• Previous Rating: Market Perform

• New Rating: Outperform

• Previous Target: Not provided

• New Target: $65

Given the current price of $56.10, the new target implies a 16% potential upside—an assertive stance in a sector where incremental gains are often hard-won.

What’s Behind the Upgrade?

KBW’s analysis appears driven by:

• Strong AUM growth and net inflows, even amid currency headwinds

• Outperformance in both advisory and asset management

• A sustained rally in share price, underpinned by solid fundamentals

Lazard’s Business Model: A Dual Engine of Growth

Global Advisory: The M&A and Restructuring Powerhouse

Lazard’s advisory business, serving corporations, partnerships, institutions, and governments, has been a consistent generator of fees—particularly in volatile or opportunistic markets. As M&A activity rebounds and restructuring demand remains elevated, Lazard’s global reach positions it to capture share from less diversified rivals.

Asset Management: Scaling AUM and Attracting Inflows

Lazard’s asset management arm manages over $250 billion as of July 2025, with recent months showing robust net inflows ($4.5 billion in July alone) and market appreciation ($3.9 billion), even as foreign exchange trends posed headwinds. The ability to grow AUM in challenging markets speaks to franchise strength and client trust.

“LAZ's AUM climbed to $253.7B in July, lifted by $4.5B in net inflows and $3.9B in market gains despite FX headwinds.”
— Zacks Investment Research, August 13, 2025

Financial Performance and Technical Backdrop

Recent Financials: Key Metrics

• Assets Under Management (AUM): $253.7 billion (July 2025)

• Net Inflows (July): $4.5 billion

• Market Appreciation (July): $3.9 billion

• FX Depreciation Headwind: $3.2 billion

Stock Price Performance: A Strong Run into the Upgrade

• Current Price: $56.10

• 3-Month Gain: 19% (source: Zacks)

• Yearly Range: $31.97 (low) to $61.14 (high)

• RSI: 69.7 (indicates strong upward momentum)

• Above EMA/SMA: Recent price is above both the 20-day EMA ($53.55) and SMA ($53.12), with Bollinger Bands also signaling continued strength.

Volume and Volatility:

• Average Daily Volume: 97,701 shares

• Recent Volume: Below average in early trading, suggesting limited selling pressure following the upgrade news.

Technical Take

LAZ’s technicals confirm the underlying bullish case: the stock is not only riding a 19% three-month rally but is also positioned near its 52-week highs, trading firmly in bullish territory.

News Flow: Catalysts Behind the Momentum

Positive AUM Trends and Industry Outperformance

• Aug 19, 2025: Zacks notes LAZ’s 19% rally and asks if the rally can continue, highlighting sector outperformance.

• Aug 13, 2025: Zacks reports a 2.1% AUM increase in July, driven by both net inflows and market performance.

• Aug 12, 2025: Business Wire details LAZ’s $253.7B in AUM, underscoring the firm’s ability to attract and retain assets even against FX headwinds.

The news flow over the past month has been decisively positive, with each headline reinforcing Lazard’s operational and financial momentum.

Potential Upside: What a 16% Move Could Mean

Price Target Context

With the new $65 target, investors are looking at a 16% potential return from current levels. This is particularly notable given:

• LAZ’s outperformance relative to its sector and major indices

• A favorable technical setup supported by RSI and moving averages

• Recent positive news, including AUM growth and strong inflows

Should Lazard reach KBW’s target, it would mark a new 52-week high and signal continued institutional confidence in the firm’s growth trajectory.

Analyst Confidence and Broader Implications

Keefe Bruyette’s upgrade carries extra weight given their deep sector expertise and influential role among institutional investors. Their bullish call now places LAZ on the radar of money managers who track such moves for sector allocation and alpha generation.

This is not a knee-jerk upgrade: it is rooted in both fundamental and technical strength, as reflected by robust AUM growth, asset inflows, and consistent operational execution.

Risks to Consider

While the upgrade and price action are bullish, investors should remain vigilant:

• Market Sensitivity: As a global advisory and asset management firm, LAZ is exposed to macroeconomic cycles and equity market trends.

• FX Headwinds: Continued foreign exchange volatility can weigh on reported AUM and earnings.

• Competitive Landscape: The advisory and asset management sectors remain highly competitive, with pricing and margin pressures possible in downturns.

Conclusion: A Compelling Risk/Reward Setup

Lazard stands at a potential inflection point: operational momentum, technical strength, and a high-conviction upgrade from a specialist firm all align to create an attractive risk/reward profile. For sophisticated investors seeking exposure to a global advisory and asset management leader, the latest analyst action is a catalyst worthy of attention.