Outflows in the March quarter worse than Credit Suisse expected, although a large proportion were lower-margin Westpac-related outflows and cash/fixed-income outflows.
The broker’s review of JO Hambro indicates the overall performance is soft, which could leave the company exposed if there are reallocations away from equities.
Earnings are expected to decline in FY20 and FY21 and limited scope for performance fee recovery is envisaged in the near term.
Target is $4.90. Neutral.
Sector: Diversified Financials.
Target price is $4.90.Current Price is $5.56. Difference: ($0.66) – (brackets indicate current price is over target). If PDL meets the Credit Suisse target it will return approximately -13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
