Citi, Morningstar uncertain on Australia's Perpetual over selling units to KKR

Perpetual

08/05/2024 22:27

(Updates)
    ** Citi trims PT on Australian fund manager manager
Perpetual Ltd  PPT.AX  to A$23.25 from A$25.95; retains
"neutral" rating on the stock
    ** Cites "uncertainty" regarding amount of proceeds that PPT
would receive after it sells its corporate and wealth units to
KKR  KKR.N  
        ** Analysts at Morningstar retain fair value est. of
A$26/share
        ** Lack of details on transaction, separation, and
capital gains tax make it difficult to ascertain whether or not
deal is accretive to our current intrinsic assessment -
Morningstar
        ** The market is otherwise in the dark about other
outgoings, making it hard to know how much PPT shareholders will
receive on Feb 2025 completion, also making it difficult to
assess the deal with any certainty - Citi
    ** Retains a 'neutral' rating for stock
    ** 5 of 8 analysts rate the stock "buy", 3 "hold"; their
median PT is A$26.33 – LSEG data
    ** Stock has fallen 12.40% this year, as of last close

 (Reporting by Poonam Behura and Roshan Thomas in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))