S&P MAINTAINS HOLD OPINION ON SHARES OF GREENHILL AND CO. A3:05 PM ET 7/15/11
An unconfirmed Bloomberg article states that Timothy George, a senior Managing Director at GHL, is leaving the firm. George is reportedly the third to leave since early June. We think human capital is GHL's most valuable asset, and losing talent will likely limit GHL's top-line growth. Given this news and GHL's elevated compensation structure, we lower our '11 EPS estimate by $0.24 to $1.26 and '12's by $0.62 to $2.28. We lower our target price by $15 to $50, 28.6X our forward earnings forecast and a premium to advisor peers due to GHL's high degree of operating leverage.