UPDATE: UBS Starts Houlihan Lokey (HLI) at Buy

UBS initiated coverage on Houlihan Lokey (NYSE: HLI) with a Buy rating and a price target of $25.00, calling it a late-cycle play which has become more compelling given recent uncertainty.

Analyst Brennan Hawken commented, "Given recent volatility, we think HLI is particularly intriguing, as concerns over global growth and corresponding declines in global markets increase the risk of a pause (if not a pullback) in the M&A cycle. We believe this concern has caused the boutiques to underperform recently and given HLI's counter-cyclical business mix, we believe the stock is appealing in this uncertain environment."

HLI's mid-market M&A advisory business should be less reliant on the M&A cycle, where larger deals tend to be much more subject to booms and busts, the analyst said.

For an analyst ratings summary and ratings history on Houlihan Lokey click here. For more ratings news on Houlihan Lokey click here.

Shares of Houlihan Lokey closed at $22.35 yesterday.

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