Citizens has kept its Market Outperform rating on Lazard (LAZ) and set a price target of $65.00, according to a research note published Friday. That target implies approximately a 21% upside from Lazard's then-current share price of $53.79, with the stock trading at a price-to-earnings ratio of 24.24.
The research firm outlined a mix of encouragement and caution. On the positive side, Citizens commended Lazard's management for publishing clear, measurable objectives tied to the firm's 2030 plans, including publicly stated expectations for headcount growth and productivity. Citizens said that framing those targets publicly "adds to accountability," and noted management's transparency about its initiatives and the practice of setting tangible goals.
At the same time, Citizens underscored several areas where Lazard must still prove itself. The bank needs to show the sustainability of the improvements it has reported and to demonstrate that recent investments are generating the intended value. The firm also emphasized that Lazard must secure market share gains in its Advisory segment and stabilize and revitalize its Asset Management business to justify the upside implied by the target price.
Dividend consistency was highlighted as a credit-strength indicator. Data referenced by the research note indicate Lazard has maintained dividend payments for 22 consecutive years and currently yields 3.72%.
Separate financial results referenced in the note underline recent momentum in the business. Lazard reported fourth-quarter 2025 earnings per share of $0.80, above the $0.69 forecast and representing a 15.94% surprise versus expectations. Revenue for the quarter reached $907 million, topping the anticipated $845.34 million. Citizens cited those results as evidence of the company’s robust financial performance in the period, while noting the broader execution and market-share questions that remain.
Overall, Citizens' stance couples a constructive view on management accountability and recent operating results with caution about whether current gains are durable and sufficient across Advisory and Asset Management. Investors and market participants following Lazard will likely weigh the potential upside implied by the $65 target against the operational and competitive risks highlighted by the research note.
Key points
- Citizens maintained a Market Outperform rating on Lazard with a $65.00 price target, implying about 21% upside from $53.79 and a P/E of 24.24 - sectors impacted: financial services, investment banking.
- Management earned praise for transparent 2030 targets tied to headcount growth and productivity, which Citizens views as increasing accountability - sectors impacted: corporate governance, capital markets.
- Lazard reported Q4 2025 EPS of $0.80 versus a $0.69 forecast (15.94% surprise) and revenue of $907 million versus $845.34 million expected - sectors impacted: asset management, advisory services.
Risks and uncertainties
- Uncertainty over whether Lazard can sustain its recent business improvements and justify investments - this affects investor confidence in financial services and investment banking.
- The company must achieve market share gains in Advisory and stabilize its Asset Management unit to meet expectations - this risk impacts advisory and asset-management markets.
- Potential execution risk tied to meeting public targets for headcount growth and productivity, which could influence operating results and capital allocation decisions - relevant to corporate management and capital markets.