At face value, Perpetual’s Q1 market update was a positive one, but Citi analysts point out there was one big boost from one large mandate that had been filled quicker-than-expected.
Underlying, the analysts spotted sizeable outflows from both fixed income and US equities. The analysts do concede investment performance has been “strong” recently, but Citi is not sure whether we are witnessing a turning point in fund flows.
Target price lifts to $40.40 from $39.40. Neutral rating retained.
Sector: Diversified Financials.
Target price is $40.40.Current Price is $40.95. Difference: ($0.55) – (brackets indicate current price is over target). If PPT meets the Citi target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
