Lazard (NYSE:LAZ) EPS May Increase Incrementally

Lazard's (NYSE:LAZ) could increase incrementally in 2011 and 2012 as the company makes changes to its compensation and financing expenses.

Ticonderoga said, "We suspect that LAZ is moving closer to making structural changes with respect to both compensation expense and their financing profile. Detailed herein, we estimate the potential incremental EPS impact that various changes to compensation expense and/or debt (whether it is a refinancing and/or principal reduction) would have on our current 2011 EPS estimate of $2.48. We estimate that EPS could increase anywhere from 1% to 16% (potentially higher) depending on the degree of comp reduction and/or debt restructured. We note that while we use our 2011 EPS estimate for the analysis, we think that is likely more of a 2012 event. However, even absent a change, we continue to think that LAZ offers the best risk.

Lazard closed Friday at $37.03, rising by $0.12, or 0.33 percent. They maintain a "Buy" rating on them and a price target of $42 a share.