Morgan Stanley has maintained its Equalweight score on shares of Hamilton Lane Inc . (NASDAQ: NASDAQ:) and elevated the value goal to $140 from $132.
Following the corporate’s second-quarter 2024 earnings, the agency has adjusted its earnings per share (EPS) estimates for the upcoming years. The CY24e EPS forecast has been raised by 5.6% to $4.82, up from the earlier $4.56 estimate. Conversely, the CY25e EPS prediction has been barely decreased by 0.5% to $5.01 from $5.03.
The adjustment to Hamilton Lane’s worth goal displays a change within the price-to-earnings (P/E) a number of, which Morgan Stanley now units at 28 occasions. The rise within the a number of has contributed to the upper worth goal for the asset administration agency.
Moreover, the analyst has revised the third quarter 2024 EPS estimate downwards by 5% to $1.04 from the previous forecast of $1.09.
The up to date figures from Morgan Stanley come after an in depth evaluate of Hamilton Lane’s current earnings efficiency. The agency’s determination to regulate the EPS estimates for the present and following yr signifies a nuanced view of the corporate’s monetary trajectory. The slight lower within the CY25e EPS estimate suggests a conservative stance for Hamilton Lane’s progress within the medium time period.
Hamilton Lane has unveiled its fiscal yr 2024 outcomes, marking a major 22% progress in administration and advisory price income in comparison with the earlier yr. The corporate reported a GAAP EPS of $3.69 and a non-GAAP EPS of $3.92, demonstrating a sturdy monetary efficiency. Hamilton Lane additionally declared a ten% enhance in its annual fiscal dividend to $1.96 per share and famous a 7% enhance in its whole asset footprint to $921 billion.
The corporate has made strategic investments in know-how and partnerships and launched a specialised enterprise capital fund. The agency’s whole asset footprint has expanded to $921 billion, with fee-earning AUM rising by 15% to $65.7 billion. Regardless of elevated bills as a result of headcount progress and revenue-related bills, the corporate goals for sturdy double-digit progress whereas managing bills.
InvestingPro Insights
Hamilton Lane Inc. (NASDAQ:HLNE) has demonstrated a sturdy monetary efficiency with a notable 20.69% income progress and a robust 44.84% working revenue margin over the past twelve months as of Q1 2023. The corporate’s dedication to shareholder worth is clear by way of its constant dividend progress, having raised its dividend for 7 consecutive years. This dedication to returning capital to shareholders is complemented by a dividend yield of 1.44% as of 2024.
An InvestingPro Tip highlights that Hamilton Lane is buying and selling at a P/E ratio of 30.91, which is taken into account low relative to its near-term earnings progress, suggesting potential for elevated investor curiosity. Moreover, with a Value / Ebook ratio of 13.15, the agency is buying and selling at a premium, which may mirror the market’s confidence in its belongings and future progress prospects. Traders may additionally discover reassurance in the truth that Hamilton Lane’s liquid belongings exceed its short-term obligations, indicating a stable liquidity place.
For these seeking to delve deeper into Hamilton Lane’s financials and efficiency metrics, InvestingPro affords extra insights and ideas. At present, there are 11 extra InvestingPro Suggestions accessible that would assist traders make extra knowledgeable choices about their investments in Hamilton Lane.
As Hamilton Lane Inc. approaches its subsequent earnings date on October 29, 2024, market members will likely be carefully watching to see if the corporate can maintain its constructive trajectory and meet the expectations set forth by analysts and its personal historic efficiency.
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