Greenhill & Co tumbles after Q3 miss, analyst downgrade

Greenhill & Co

03/11/2020 18:54

** Greenhill & Co  GHL.N  shares tumble 19.03% to $10.58
after investment bank misses estimates and analyst turns bearish
    ** GHL on track for 2nd worst day ever. Stock suffered
biggest one-day pct fall of 21.9% on Aug 1, 2019
    ** Co posts Q3 rev of $56 mln vs Street consensus view of
$57.6 mln, per Refinitiv IBES data  urn:newsml:reuters.com:*:nPnYWKBRa
    ** Loss of 49 cents/sh wider than avg analysts' estimate of
8 cents/sh loss (Refinitiv)
    ** Keefe, Bruyette & Woods downgrades GHL to 'underperform'
from 'market perform' saying results miss due to adverse
combination of lower-than-expected advisory revs and
higher-than-expected expenses
    ** KBW analyst Michael Brown points out he upgraded GHL to
'market perform' last month on tide of rising M&A activity, but
now feels co faces "significant" rev headwind following recent
departure of 6 managing directors from its Capital Advisory
group (formerly Cogent Partners)
    ** Greenhill's Q3 results contrast with rivals Lazard Ltd
 LAZ.N , Evercore Inc  EVR.N  and Moelis & Co  MC.N  as those
banks beat estimates  urn:newsml:reuters.com:*:nL4N2HK3N3  urn:newsml:reuters.com:*:nL4N2HK3N3  urn:newsml:reuters.com:*:nL4N2HI45O
    ** Including moves on Tues, GHL's stock has lost ~38% YTD.
LAZ down ~11%, while MC up ~19% and EVR up ~7% over same time
frame

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))