Moelis Maintains Buy Rating with $89 Target by KBW Analyst

KBW analyst Alex Bond maintains a Buy rating on Moelis with a price target of $89.00, despite the company's shares closing at $71.04. Bond has a 2-star rating on TipRanks with an average return of 3.1% and a 100% success rate. The analyst consensus on Moelis is a Hold with an average price target of $68.00.

Moelis & Company (NYSE:MC) reported a significant increase in its second quarter (Q2) 2025 earnings, reflecting a robust performance in the investment banking sector. The company's Q2 revenue reached $365.4 million, up by 38% compared to the same period last year, according to a company press release issued on July 1, 2025 [2].

Moelis's Q2 adjusted earnings per share (EPS) of $0.53, compared to $0.18 in the prior year period, represent a 194% increase. This strong performance was driven by the firm's integrated global platform and the continued trust of its clients [2]. For the first half of 2025, Moelis reported revenues of $672.0 million, a 39% increase from the comparable period in 2024 [2].

The company's operational efficiency was highlighted by a significant improvement in its adjusted pre-tax margin, which increased to 17.6% from 8.3% in the prior year period. The first half of 2025 saw an adjusted pre-tax margin of 16.0%, compared to 6.7% in the first half of 2024 [2]. This efficiency was reflected in the company's impressive gross profit margin of 92.43% [2].

Moelis's financial health was further evidenced by a strong balance sheet, with $474.9 million in cash and short-term investments and no debt or goodwill. The company declared a quarterly dividend of $0.65 per share, payable on September 18, 2025, maintaining a dividend yield of 3.66% [2].

The firm also announced a significant leadership transition set to take place on October 1, 2025. Ken Moelis, the current CEO, will step down and assume the role of Executive Chairman, while Navid Mahmoodzadegan will succeed him as CEO. Concurrently, Jeff Raich will become Executive Vice Chairman [2].

Analysts have responded positively to Moelis's Q2 performance. KBW analyst Alex Bond maintains a Buy rating on Moelis with a price target of $89.00, despite the company's shares closing at $71.04. Bond has a 2-star rating on TipRanks with an average return of 3.1% and a 100% success rate [1]. The analyst consensus on Moelis is a Hold with an average price target of $68.00 [1].

Moelis received an upgrade from Morgan Stanley, which raised its stock rating from Underweight to Overweight, citing a record deal pipeline. Morgan Stanley increased its price target for Moelis to $68.00, noting that while interest rate cuts would be advantageous, they are not essential for deal completion [2]. Keefe, Bruyette & Woods also reaffirmed their Outperform rating for Moelis, maintaining a price target of $69 [2].

References:
[1] https://www.tipranks.com/news/the-fly/moelis-reports-q2-adjusted-eps-53c-consensus-39c-thefly
[2] https://www.investing.com/news/company-news/moelis--company-q2-revenues-surge-38-to-3654-million-93CH-4152311