PJT Rallies on Bet Oil Pain Will Drive Restructuring Gain

  • Susquehanna says plunge in crude price is a `call to action'
  • PJT's rally Thursday brings stock's gain for the week to 15%

Paul J. Taubman’s PJT Partners Inc. rallied in New York trading after Susquehanna Financial Group said the plunge in oil prices is a “call to action” to buy the stock because the investment bank can win more fees from restructuring work.

PJT climbed 2.9 percent to $25.88 at 4:15 p.m., extending its advance for the week to 13 percent. The New York-based firm, which also focuses on mergers and acquisitions and fund placement, was spun off of Blackstone Group LP and began trading publicly in October.

Taubman’s restructuring team is run by former Blackstone executive Tim Coleman, and has won mandates including work for Magnum Hunter Resources Corp., an oil explorer that filed for bankruptcy. After crude oil’s tumble, PJT and rivals including Lazard Ltd. are poised to advise more energy companies looking to sell and acquire assets or go bust, Susquehanna said.

“We believe restructuring is set to increase from cycle lows, while M&A is set to slow down given the sell-off in credit” and increased stock market volatility, Doug Sipkin, an analyst at Susquehanna, said Thursday in a note to clients. “Oil pain drives restructuring gain.”

Taubman’s firm is also advising lenders to the Sports Authority Inc. and Getty Images Inc. He created PJT after leaving Morgan Stanley, and merged his firm with the advisory businesses of Blackstone this year.

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