Assessing Houlihan Lokey: Insights From 6 Financial Analysts

In the preceding three months, 6 analysts have released ratings for Houlihan Lokey HLI, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have set 12-month price targets for Houlihan Lokey, revealing an average target of $178.17, a high estimate of $200.00, and a low estimate of $169.00. Observing a 4.5% increase, the current average has risen from the previous average price target of $170.50.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Houlihan Lokey. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Houlihan Lokey. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Houlihan Lokey compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Houlihan Lokey's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Houlihan Lokey's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Houlihan Lokey analyst ratings.

All You Need to Know About Houlihan Lokey

Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.

Financial Insights: Houlihan Lokey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Houlihan Lokey showcased positive performance, achieving a revenue growth rate of 23.12% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Houlihan Lokey's net margin excels beyond industry benchmarks, reaching 16.27%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Houlihan Lokey's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.94%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Houlihan Lokey's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.04% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Houlihan Lokey's debt-to-equity ratio is below the industry average. With a ratio of 0.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.