NEW YORK, May 16 (Reuters) -High-priced shares of merger-advisory firm Greenhill & Co (GHL.N) could tumble unless there is a boom in corporate mergers, Barron’s reported in its May 17th edition.
The company has one of the highest valuations of any Wall Street firm, trading at 30 times earnings per share estimates for this year. Rivals, such as Lazard (LAZ.N) and Evercore Partners (EVR.N), trade at around 16 to 26 times projected 2010 earnings per share.
Barron’s noted that Greenhill insiders recently sold 3 million shares, indicating they think the stock is fully priced.
However Greenhill supporters point to a looming merger boom as justification for the firm’s high valuation, Barron’s said. (Reporting by Helen Kearney; Editing by Jan Paschal)