Citi observes further progress with moderating fund outflows and the first performance fees in two years, although the flagship strategy performance remains sub-optimal.
A resumption of material flows is considered some time away and, hence, the broker retains a Sell rating. Estimates are lifted 5-8% to mark to market amid modestly higher performance fee expectations.
The broker is encouraged that around 70% of annual distribution to unit holders is being reinvested back into Platinum Asset Management. Target is raised to $3.00 from $2.60.
Sector: Diversified Financials.
Target price is $3.00.Current Price is $3.70. Difference: ($0.70) – (brackets indicate current price is over target). If PTM meets the Citi target it will return approximately -23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
