Citigroup Downgrades Pershing Square (NYSE:PS) to Sell

Key Points

• Citigroup downgraded Pershing Square from “neutral” to “sell” and set a $45 price target, implying 17.49% downside from the prior close.
• Analyst sentiment is broadly cautious: Pershing Square has a consensus “Reduce” rating and an average price target of $42.56, based on one Buy, eight Hold, and three Sell ratings.
• The stock opened at $54.54, with a $21.82 billion market capitalization and a 12-month range of $22.01 to $60.40; its latest quarterly EPS of $0.14 exceeded estimates of $0.12.

Pershing Square (NYSE:PS - Get Free Report) was downgraded by investment analysts at Citigroup from a "neutral" rating to a "sell" rating in a research note issued to investors on Friday, Marketbeat reports. They currently have a $45.00 price objective on the stock. Citigroup's price objective points to a potential downside of 17.49% from the company's previous close.

A number of other analysts have also recently commented on the company. Wall Street Zen raised Pershing Square from a "sell" rating to a "hold" rating in a research report on Saturday, October 3rd. Weiss Ratings raised Pershing Square from a "sell (d)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. Tigress Financial raised their price objective on Pershing Square from $39.00 to $41.00 and gave the stock a "neutral" rating in a research note on Thursday, September 3rd. JonesTrading lowered Pershing Square from a "buy" rating to a "hold" rating in a research report on Tuesday, September 29th. Finally, Wells Fargo & Company assumed coverage on shares of Pershing Square in a report on Thursday, October 1st. They issued an "underweight" rating and a $41.00 price target on the stock. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $42.56.

Pershing Square Stock Performance

NYSE:PS opened at $54.54 on Friday. The stock has a market cap of $21.82 billion and a P/E ratio of 389.57. Pershing Square has a twelve month low of $22.01 and a twelve month high of $60.40. The stock's 50 day moving average is $43.69.

Pershing Square (NYSE:PS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The company reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.02. The company had revenue of $68.03 million for the quarter. As a group, research analysts anticipate that Pershing Square will post 0.55 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. NewEdge Advisors LLC purchased a new stake in Pershing Square in the 2nd quarter worth approximately $1,702,000. Equitec Proprietary Markets LLC purchased a new position in shares of Pershing Square during the 2nd quarter valued at approximately $3,828,000. Proficio Capital Partners LLC acquired a new position in shares of Pershing Square in the 2nd quarter valued at $1,459,000. Rivernorth Capital Management LLC purchased a new stake in Pershing Square during the second quarter worth $14,787,000. Finally, Clal Insurance Enterprises Holdings Ltd purchased a new stake in Pershing Square during the second quarter worth $9,858,000.

Pershing Square Company Profile

Pershing Square USA, Ltd. is a closed-end investment company listed on the New York Stock Exchange under the symbol PS. The company is designed to provide investors with long-term capital appreciation through a concentrated portfolio of investments in publicly traded businesses.

The fund is managed by Pershing Square Capital Management, L.P., an investment management firm founded and led by William A. Ackman. Its investment approach generally emphasizes detailed fundamental research, activist engagement when appropriate, and ownership of a limited number of companies that the manager believes have durable business models, strong management teams, and long-term growth potential.

Pershing Square USA primarily focuses on publicly traded companies in the United States and other developed markets, with investment decisions centered on individual business fundamentals rather than broad market exposure.

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