Morgan Stanley has increased its target share price for Evercore Partners (NYSE: EVR) to $381.00 from $376.00, while keeping an Equalweight recommendation on the investment banking advisory firm. The change follows modest upward revisions to earnings per share estimates for 2026 and 2027 and leaves Morgan Stanley's valuation approach unchanged.
The brokerage raised its 2026 EPS forecast by $0.38, to $19.75, and lifted its 2027 EPS projection by $0.30, to $27.19. Morgan Stanley applied the same 14.0x price-to-earnings multiple used previously to its slightly higher 2027 EPS figure to arrive at the new $381 target.
According to the firm, the higher forecasts reflect anticipated increases across several revenue streams - advisory fees, underwriting commissions, trading commissions and investment management revenue - even after accounting for higher expense assumptions. Morgan Stanley now models an improvement in Evercore's adjusted compensation ratio from 64.2% in 2025 to 62.8% in 2026 and 61.0% in 2027.
However, the bank notes non-compensation costs are expected to rise more than previously anticipated based on company guidance, with 2026 non-compensation expenses projected to increase by 16-17%. That dynamic tempers margin improvement relative to the compensation-line gains.
Evercore's recent operating performance has supported the analyst revisions. The company delivered robust revenue growth of 27.03% over the last twelve months and reported fourth-quarter 2025 results that beat consensus expectations. Evercore posted adjusted earnings per share of $5.13 for the quarter, ahead of the $4.02 forecast, and reported revenue of $1.28 billion versus $1.12 billion expected.
At the time of Morgan Stanley's update, Evercore shares were trading at $349.57. The stock has returned 21.22% over the prior year, despite exhibiting price volatility consistent with a reported beta of 1.56. The company's market capitalization stands at $13.8 billion.
Valuation metrics noted alongside the update include a PEG ratio of 0.41, per InvestingPro data, which the report characterized as an attractive level relative to projected growth rates.
Summary of the firm-level outlook and modeling assumptions:
- Price target: raised to $381 from $376 using a 14.0x multiple on 2027 EPS
- EPS revisions: 2026 EPS increased by $0.38 to $19.75; 2027 EPS increased by $0.30 to $27.19
- Revenue drivers: expected growth in advisory, underwriting, commissions and investment management revenue
- Expense outlook: improved adjusted compensation ratio offset by a larger-than-previously-modeled rise in non-compensation expenses (company guidance implies a 16-17% increase in 2026)
The net effect of Morgan Stanley's revisions is a modest increase in the price target while maintaining an Equalweight stance on Evercore's stock. The firm's analysis highlights improving top-line trends and margin gains from compensation efficiency, balanced by higher operating costs.