Keefe Bruyette Adjusts Price Target for Houlihan Lokey Amid Growth

On December 17, Keefe Bruyette lowered its price target for Houlihan Lokey, Inc. (NYSE:HLI) to $228 from $230, while maintaining an Outperform rating. The firm expressed optimism about the economic climate anticipated for 2026, which is reflected in the company’s recent financial results.

In its fiscal Q2 2026 earnings report, Houlihan Lokey announced revenue of $659 million, a notable increase from $575 million during the same period ending September 30, 2024. The company’s net income also demonstrated significant growth, rising to $112 million, or $1.63 per diluted share, compared to $94 million or $1.37 per diluted share from the previous year.

Segment Performance and Financial Strength

Revenue growth was diversified across multiple segments. The Corporate Finance division saw a robust increase of 21% year over year, while Financial Restructuring revenue grew by 2%. Additionally, Financial and Valuation Advisory revenue climbed by 10%. Each segment’s performance contributed positively, despite fluctuations in market activity.

The strength of Houlihan Lokey’s balance sheet further underscores its financial stability. As of September 30, 2025, the firm reported holding $1.11 billion in unrestricted cash, cash equivalents, and investment securities. This liquidity is crucial, providing the company with flexibility to navigate various economic cycles.

Houlihan Lokey operates as a global investment bank, with its core competencies in mergers and acquisitions, capital solutions, financial restructuring, as well as valuation and advisory services. The firm’s diverse service offerings position it well for continued performance in a supportive economic environment.

While acknowledging the potential of Houlihan Lokey as a solid investment, some analysts suggest that investments in artificial intelligence stocks may offer greater returns with reduced risk. In particular, there are reports of AI stocks that could deliver a potential upside of 100x.

As the market evolves, investors will closely monitor Houlihan Lokey’s performance and the broader economic landscape, particularly as the firm looks toward 2026. The upcoming quarters will be critical in assessing whether the anticipated economic backdrop will indeed support continued growth.