Citi cuts PT on Perpetual on lower earnings contribution from Pendal; shares fall

Great China Holdings Hong Kong

25/08/2023 02:09

(Adds share moves)
    ** Analysts at Citi cut price target on Australia's
Perpetual  PPT.AX  to A$24.80 from A$30 
    ** Citi lowers stock rating to "neutral" from "buy"
    ** Brokerage says earnings contribution from recently
acquired Pendal  PDL.AX  was the main problem and materially
down from last contribution
    ** Brokerage not yet convinced a turnaround in the stock's
value is "imminent"
    ** Lowers FY25 EPS expectations by a further 25% on the
financial services firm
    ** Nine of 11 analysts rate the PPT "buy" or higher and two
"hold"; their median PT is A$29.75 – Refinitiv data
    ** Shares of Perpetual fall as much as 5.4%, hitting their
lowest since April 5
    ** PPT stock down 4% this year, as of last close
    
    ($1 = 1.5588 Australian dollars)
    

 (Reporting by Nausheen Thusoo and Rishav Chatterjee in
Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))