Houlihan Lokey vs Morgan Stanley

8-K Financial Filing Analysis for Houlihan Lokey (2026-09-22)

Houlihan Lokey reported several key governance and leadership actions following its annual stockholder meeting on September 16, 2026. Stockholders approved the Second Amended and Restated 2016 Incentive Award Plan, which sets the reserved share pool at 12 million shares, reinstates an annual evergreen replenishment at a reduced 1% rate (down from 6%), and eliminates the fixed plan expiration date. Additionally, the company announced the election of Thomas Reichert to the Board as an independent Class I director effective October 1, 2026, receiving a $120,000 initial restricted stock grant. In executive leadership changes, General Counsel Christopher M. Crain retired to transition into a Corporate Senior Advisor role, and Prabha Sipi Bhandari was appointed as Chief Legal Officer and Secretary.

• Stockholders approved the Second Amended and Restated 2016 Incentive Award Plan, establishing a 12 million share reserve and resetting annual evergreen dilution increases to 1% (down from 6%).
• Thomas Reichert was elected as an independent Class I director effective October 1, 2026, receiving a $120,000 restricted stock grant vesting over three years.
• Christopher M. Crain retired as General Counsel to become Corporate Senior Advisor, with Prabha Sipi Bhandari appointed as Chief Legal Officer and Secretary on September 16, 2026.

Ad Tech's Public Market Woes: Investment Banker Explains Small-Cap Problem

At ExchangeWire's ATS London conference, investment banker Josh Wepman of Houlihan Lokey argued that the struggles of publicly-traded ad tech companies stem from their small market capitalizations, not performance. Most companies are too small to attract significant investment from index funds and mutual funds, with 'it's hard to be a $7 billion company' serving as a key quote. Deal activity has picked up to around $14 billion so far in 2026, but transactions are fewer and larger. Nick Macshane of Progress Partners noted extreme volatility in ad tech stocks, with some companies swinging 60% up or down, suggesting many should not be public. The article highlights take-private trends, mentioning Criteo's rumored buyout, and companies like DoubleVerify, LiveRamp, and Integral Ad Science moving off public markets. It also notes enterprise interest from Salesforce, Adobe, ServiceNow, Workday, Databricks, Snowflake, and OpenAI.

• Josh Wepman, MD at Houlihan Lokey, says public ad tech companies are too small for index/mutual funds to invest meaningfully.
• Public ad tech stocks have underperformed broader tech indices, with declining multiples through 2025-2026.
• Deal activity reached approximately $14 billion so far in 2026, spread across fewer, larger deals.

Amazon's Path to Recovery: AWS Growth and AI Strategy

The article discusses Amazon's stock performance, which has dropped over 7% from its record high in August. Morgan Stanley analysts added Amazon to their top picks and raised their price target to $350, citing under-appreciated AWS growth and profitability. The key factors for Amazon's recovery include strong AWS revenue growth, better-than-expected operating margins, the strategic value of Bedrock, success in agentic AI, and potential savings from physical AI robotics in fulfillment centers. CEO Andy Jassy's commentary on AI investment returns and data center lifecycle is central to investor confidence. Amazon's Q3 earnings are expected on Oct. 29.

• Amazon's stock dropped over 7% from its record high of $284 on Aug. 3.
• Morgan Stanley raised Amazon's price target to $350 from $335 and added it to top picks.
• Amazon's Q3 earnings are scheduled for Oct. 29 after market close.

Morgan Stanley Says Seagate Stock Could Rally 82%

Morgan Stanley reiterated its overweight rating on Seagate Technology Holdings and raised its 12-month price target slightly to $1,200 from $1,187, implying nearly 82% upside from the previous close. Analyst Erik Woodring cited strong demand for hard disk drives (HDDs) that has outpaced supply, with a 400-exabyte shortfall noted by HSBC. He believes the market resembles memory a year ago, with margins well below peak and pricing accelerating. Seagate's recent spot deals have priced at two to five times contracted levels, which could drive further upside. The consensus on Wall Street is also bullish, with 24 of 27 analysts rating the stock a buy or strong buy. Seagate shares have fallen 23% in the past month but are up 140% year to date and 208% in the past 12 months.

• Morgan Stanley raised its 12-month price target on Seagate to $1,200 from $1,187, implying nearly 82% upside.
• Analyst Erik Woodring cited strong HDD demand outpacing supply and a 400-exabyte shortfall.
• Seagate's recent spot deals were priced at two to five times contracted levels.

Morgan Stanley Capital Partners Acquires The Rapid Group

Morgan Stanley Capital Partners acquires The Rapid Group, a press release dated October 20, 2026.