- BofA initiated Evercore (EVR) at Buy with a $435 target, calling it the best pure-play boutique to benefit from a pickup in M&A.
- About 80% of revenue comes from advisory, split roughly evenly between M&A and non-deal advisory.
- The Robey Warshaw acquisition strengthens UK/EMEA coverage and cross-border positioning as Evercore ranks 8th globally with ~9.7% M&A share.
- Forecasts point to modestly higher U.S. deal volume but rising deal value in 2026, led by larger transactions and improving private-equity activity, though regulatory and macro risks could delay closings.
Read More
BofA’s initiation paints Evercore as well-positioned to benefit from resurgent M&A markets, especially as a firm that derives a large majority of its revenues from advisory work rather than underwriting or capital markets, which are more exposed to rate fluctuations. With ~80% of its revenues tied to advisory work, the firm’s income stream is closely aligned with transaction activity—both in M&A and in non-deal advisory services (such as restructuring or strategic consulting).
The acquisition of Robey Warshaw is more than a geographic move—it’s about securing elite talent and advisory relationships. Robey Warshaw is known for involvement in high-profile UKmega-deals; its integration helps Evercore gain access to UK boardrooms and boosts its EMEA coverage footprint at a time when non-US M&A is expected to contribute materially to growth. This strengthens Evercore’s ability to win cross-border deals, which carry higher fees and complexity, enhancing margin potential.
Macro trends reinforce the bullish case: EY-Parthenon projects US M&A deal volume for transactions over $100 million to grow ~3% in 2026, following ~9% growth in 2025; deal value is rising even more sharply, especially for larger deals. Private equity activity is set to contribute with gains in sponsor-led transactions and exits. BCG’s M&A outlook shows that global deal value reached ~$3.0 trillion in 2025 (↑31% YoY), largely driven by large or megadeals, while deal volume lagged but sentiment is recovering.
Risks and open questions remain. Leverage of valuation multiples, regulatory headwinds (especially in cross-border and technology deals), and macroeconomic uncertainty (inflation, interest rates, tariffs) could inhibit deal closings or delay transactions. Evercore’s reliance on advisory revenues gives it exposure to timing risk: if deal pipelines stall, there may be revenue lags. Also, while Robey Warshaw expands footprint, integration risk and cultural alignment could influence returns.
Strategically, Evercore’s path forward likely involves growing non-US advisory revenue more aggressively, investing in talent and specialized capabilities (e.g. tech & AI advisory), and maintaining cost discipline to preserve margins amid competition. The firm should also closely monitor regulatory developments and geopolitical risk that could affect cross-border deal flows.
Supporting Notes
- BofA Securities initiated coverage of Evercore (EVR) with Buy rating and $435 price target.
- Evercore’s advisory revenues make up ~80% of its total revenues, with nearly equal contributions from M&A advisory and non-M&A advisory.
- The firm acquired UK advisory boutique Robey Warshaw (~£146-£196 million deal), expected to enhance Evercore’s EMEA presence and access to UK boardrooms.
- Evercore is ranked 8th globally for M&A advisory with ~9.7% market share, per LSEG.
- EY-Parthenon Deal Barometer forecasts US M&A volume for deals over $100m will rise approximately 3% in 2026 (after ~9% growth in 2025), with deal value accelerating and larger deals taking a bigger share.
- BCG reports global M&A deal value reached ~$3.0 trillion in 2025 (↑31% YoY), led by large and megadeals; sentiment in North America and Europe recovered materially entering 2026.
- Middle-market M&A confidence hit a six-year high in a survey, with PE firms expecting deal flow to remain steady or increase in 2026.