PDL – Morgans rates the stock as Add

Morgans upgrades the EPS forecast for FY21 by 7.2% in FY21 and circa 2% in outer years. Pendal Group reported group funds under management (FUM) rose 4.4% for the second quarter. The Add rating is unchanged and the target price is increased $8.10 from $7.15.

The broker now has increased confidence that further meaningful net outflows can be stemmed in the JOHCM business. Several funds (in particular UK/EU value orientated funds) have regained significant investment underperformance since November 2020.

The improved performance also improves the medium-term outlook for performance fees. Morgans sees the current valuation as relatively undemanding.

Sector: Diversified Financials.


Target price is $8.10.Current Price is $7.45. Difference: $0.65 – (brackets indicate current price is over target). If PDL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).



Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →