The new CEO is actively looking for acquisitions. Citi thinks further expansion into global equities is probably on his radar. No surprise, since the core business in Australia continues to suffer.
With sub-optimal investment performance (Citi’s description) and most of Perpetual’s remaining institutional FuM of $7bn relating to industry funds, Citi continues to see risk of further outflows.
Costs are being lowered, but this is a hard business to turn around, suggest the analysts. They are not surprised acquisitions are being sought, and hard. Neutral. Price target falls to $38.50 from $39.50.
Sector: Diversified Financials.
Target price is $38.50.Current Price is $35.94. Difference: $2.56 – (brackets indicate current price is over target). If PPT meets the Citi target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
