Pershing Square's (PS) "Underperform" Rating Reaffirmed at Bank of America

Key Points

• Bank of America reaffirmed its “underperform” rating on Pershing Square and cut its price target to $38 from $54, implying roughly 29.66% downside from the prior close.
• Analyst sentiment is broadly negative: Pershing Square has a consensus “Reduce” rating, with one Buy, seven Hold, and four Sell ratings, and an average target price of $42.11.
• Pershing Square shares opened at $54.02, while the company recently reported quarterly EPS of $0.14, beating the $0.12 consensus estimate, on revenue of $68.03 million.

Pershing Square (NYSE:PS - Get Free Report)'s stock had its "underperform" rating reaffirmed by Bank of America in a research report issued to clients and investors on Tuesday, Benzinga reports. They presently have a $38.00 target price on the stock, down from their previous target price of $54.00. Bank of America's price target indicates a potential downside of 29.66% from the company's previous close.

Several other brokerages have also recently commented on PS. Citigroup cut shares of Pershing Square from a "neutral" rating to a "sell" rating and set a $45.00 price target on the stock. in a research report on Friday. Wells Fargo & Company began coverage on shares of Pershing Square in a research note on Thursday, October 1st. They set an "underweight" rating and a $41.00 price objective for the company. Royal Bank Of Canada raised their price objective on Pershing Square from $41.00 to $44.00 and gave the company a "sector perform" rating in a report on Monday, October 5th. Tigress Financial lifted their target price on Pershing Square from $39.00 to $41.00 and gave the company a "neutral" rating in a research report on Thursday, September 3rd. Finally, Weiss Ratings upgraded Pershing Square from a "sell (d)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $42.11.

Pershing Square Stock Performance

Shares of PS stock opened at $54.02 on Tuesday. The stock has a fifty day simple moving average of $44.49. The company has a market capitalization of $21.61 billion and a price-to-earnings ratio of 385.86. Pershing Square has a 12 month low of $22.01 and a 12 month high of $60.40.

Pershing Square (NYSE:PS - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. The business had revenue of $68.03 million for the quarter. As a group, equities analysts predict that Pershing Square will post 0.55 EPS for the current year.

Institutional Trading of Pershing Square

Large investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC bought a new stake in shares of Pershing Square in the 2nd quarter valued at about $132,000. Ancora Advisors LLC bought a new position in Pershing Square during the second quarter worth about $302,000. Wedbush Securities Inc. bought a new position in Pershing Square during the second quarter worth about $529,000. Hsbc Holdings PLC acquired a new position in Pershing Square during the second quarter worth approximately $775,000. Finally, Readystate Asset Management LP acquired a new position in Pershing Square during the second quarter worth approximately $822,000.

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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