Moelis cut to Sell at UBS on overly optimistic expectations
UBS analyst Michael Brown downgraded Moelis to Sell from Neutral with a price target of $60, up from $58. The firm contends that the stock's risk-reward is increasingly skewed to the downside as consensus expectations for a sharp acceleration in advisory revenues and earnings appear to be too optimistic, creating risk of estimate cuts and multiple compression, the analyst tells investors in a research note. UBS adds that it sees 2027 revenue and EPS for Moelis as 10% and 22% below consensus estimates.
UBS analyst Michael Brown downgraded Moelis to Sell from Neutral with a price target of $60, up from $58.
The firm contends that the stock's risk-reward is increasingly skewed to the downside as consensus expectations for a sharp acceleration in advisory revenues and earnings appear to be too optimistic, creating risk of estimate cuts and multiple compression, the analyst tells investors in a research note.
UBS adds that it sees 2027 revenue and EPS for Moelis as 10% and 22% below consensus estimates.