While asset managers are cheap Morgan Stanley suspects ongoing outflows will mean a re-rating in the near term is unlikely.
Morgan Stanley looks for the new CEO to accelerate growth through several means. The broker also believes diversifying the investments business is crucial as Perpetual has had the worst outflows of Australian asset managers in the past six months.
Equal-weight rating. Target is reduced to $36 from $48. Industry view: In-line.
Sector: Diversified Financials.
Target price is $36.00.Current Price is $32.55. Difference: $3.45 – (brackets indicate current price is over target). If PPT meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).