Lazard's (LAZ) above-consensus assets under management and net inflows in October point to positive institutional flows, while retail strength remained concentrated in emerging markets and money market funds, potentially impacting management fee mix, UBS Securities said in a note emailed Wednesday.
Although achieving positive full-year flows was not considered a significant risk, October's robust inflows represent a solid start to the quarter, according to the note.
October's net inflows of $1.7 billion exceeded UBS' estimated outflow of $500 million and Street consensus outflow estimate of $800 million for Q4. October's annualized organic growth rate was 7%, well above UBS' Q4 expectation of a 1.1% decline and consensus estimate of a 0.7% decline, the note added.
The October data brings year-to-date net inflows to $6.7 billion, placing Lazard well within its guidance for positive net flows in 2026, the brokerage said.
UBS kept a neutral rating on Lazard with a price target of $40.
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