Perpetual has acquired 75% of Barrow Hanley for $465m along with a $265m equity raising. Credit Suisse factors in little growth in the Barrow Hanley business although there is upside if the distribution capability in the US can be refined and expanded into Europe/Asia.
The broker forecasts a -50% cut in the final distribution and expects a new pay-out policy of 50-60% of underlying net profit in FY21. Neutral maintained. Target is raised to $36.50 from $32.00.
Sector: Diversified Financials.
Target price is $36.50.Current Price is $33.61. Difference: $2.89 – (brackets indicate current price is over target). If PPT meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
