Houlihan Lokey price target raised to $148 from $131 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Houlihan Lokey to $148 from $131 and keeps an Equal Weight rating on the shares. Global sponsor-backed M&A activity deal value in the first half of 2024 was up more than 30% year-over-year off of a very low base following a dramatic decline in activity in 2022 and 2023, notes the analyst, who contends that this initial increase signals a market recovery is underway. The firm expects a resurgence in sponsor activity to pick up in the second half of 2024, supporting the next leg of M&A announcements and normalized multiples across the boutique investment banks, the analyst tells investors in a Midcap Advisors group note.