Evercore (EVR) Stock Forecast & Price Target

Evercore's upcoming financial performance shows a positive outlook, driven by a significant increase in advisory revenues, which reached $698 million, marking a 23% year-over-year improvement and exceeding consensus estimates by 19%. Additionally, estimates for 2025 and 2026 have been raised due to anticipated increases in advisory revenue, underwriting fees, and investment management revenue, alongside lower income taxes. The overall M&A environment is expected to improve in the latter half of 2025 and into 2026, despite existing policy and geopolitical uncertainties, positioning Evercore favorably for future growth.

Evercore's recent financial metrics indicate a concerning trend, particularly with its compensation ratio, which decreased by 30 basis points quarter-over-quarter to 65.4%, marking it as the only firm among its peers to report a decline in this metric. This deterioration is compounded by expectations of a continuing decline in the compensation ratio, with estimates adjusted to 65.0% and 62.0% for 2025 and 2026, respectively, from previous forecasts of 65.3% and 62.1%. The outlook is further weighted by the anticipation of increased M&A activity, which may not translate into improved financial performance for the firm, ultimately leading to a cautious perspective on its stock.