Perpetual Ltd
PPT: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$69.90 | Wfmybf | Zrdwmdxph |
Perpetual: Market Doubts on Flows and Margins Unfounded; Shares Cheap
We lower our fair value estimate for narrow-moat Perpetual by 10% to AUD 27.50 per share, due to reduced projected base fee margins in the asset management business. Our prior forecast fee compression was too gradual and did not fully reflect competitive pressures from passive options and unlisted investments. However, despite our fair value cut, Perpetual remains substantially undervalued.