With funds under management -5% below Credit Suisse’s expectations in the second quarter on the back of large outflows, Perpetual’s business update was “disappointing”. As a result, earnings have been downgraded by -4-6% across the forecast period.
While disappointed, Credit Suisse highlights its Outperform rating is based on a turnaround in flows in 2021 with likely inflows into Trillium.
Outperform rating is maintained with the target falling to $37.50 from $39.
Sector: Diversified Financials.
Target price is $37.50.Current Price is $34.16. Difference: $3.34 – (brackets indicate current price is over target). If PPT meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
