Morgan Stanley double upgrades Houlihan Lokey to "overweight"

Morgan Stanley double upgrades investment bank Houlihan Lokey HLI.N to "overweight" from "underweight"

Says co generally holds up better than peers in risk-off environments and has a lower beta to the overall M&A cycle

"HLI's skew to the counter-cyclical restructuring business (30% of revenues) and less volatile Financial Advisory & Valuation business (15% of revenues) makes them a more defensive play," brokerage says

Adds that co sees more opportunity to acquire smaller boutique advisers during downturns, which drives more revenue upside when the cycle turns

Four of 9 brokerages rate the stock "buy," 4 "hold" and 1 "strong sell"; median PT is $191 — data compiled by LSEG

HLI stock down nearly 11% YTD, including session moves; it rose around 45% in 2024