Assessing Houlihan Lokey: Insights From 10 Financial Analysts

In the preceding three months, 10 analysts have released ratings for Houlihan Lokey HLI, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Houlihan Lokey and provided 12-month price targets. The average target is $185.1, accompanied by a high estimate of $230.00 and a low estimate of $169.00. Surpassing the previous average price target of $180.90, the current average has increased by 2.32%.

Investigating Analyst Ratings: An Elaborate Study

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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Houlihan Lokey's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Houlihan Lokey analyst ratings.

Delving into Houlihan Lokey's Background

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.

A Deep Dive into Houlihan Lokey's Financials

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Houlihan Lokey's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 24.12%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Houlihan Lokey's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 15.02%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Houlihan Lokey's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.72%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Houlihan Lokey's ROA stands out, surpassing industry averages. With an impressive ROA of 2.85%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Houlihan Lokey's debt-to-equity ratio is below the industry average. With a ratio of 0.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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