After a 20% fall at the start of the year, Greenhill & Co. (NYSE:GHL) has moved sharply higher in the last three weeks, tracking the broader market. Investors should not be fooled, though. While some investment banks like Stifel (NYSE:SF) and Lazard (NYSE:LAZ) offer good exposure to a recovering global M&A market, Greenhill lacks the same scale, diversified business portfolio, and robust deal pipeline that many of its peers have. Pair those unfortunate traits with a rich valuation and unjustified optimism regarding the near-term M&A market, and you have a recipe for a great short play.
I see several issues that make Greenhill's stock vulnerable at this point and make its relatively high valuation...
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