Lazard’s Earnings May Be in a Holding Pattern Until the Recession Question Is Settled

Similar to other investment banks and asset managers, we expect lackluster revenue growth with a good chance of a decline over the next two years due to the probability of a recession. Approximately 55% of Lazard’s net revenue is from acquisition and restructuring advisory, with the remaining 45% coming from institutional asset management. Restructuring revenue will increase in a recession, but it won’t fully offset a decline in acquisition advisory revenue.