Investing.com – UBS initiated coverage on Pershing Square Inc () with a Neutral rating and a price target of $39.00. The stock currently trades at $35.67, below both UBS’s target and InvestingPro’s Fair Value of $40.21, suggesting the shares may be undervalued at current levels.
The investment bank noted that Pershing Square operates as a publicly traded hedge fund manager with approximately 96% permanent capital base that generates stable, recurring fees and long-term net asset value compounding.
UBS described the company’s model as simple, scalable, and positioned to benefit from operating leverage. The firm forecast a 30% earnings per share compound annual growth rate from 2026 through 2028, nearly double that of alternative asset managers. The company’s recent performance supports this optimistic outlook, with revenue growth of 67.4% over the last twelve months and a return on assets of 18.66%.
The bank stated that the stock already reflects much of this strength at current levels. Investors are paying for durability and growth visibility, according to the firm.
UBS said further upside likely depends on stronger performance or new capital raises, leaving risk and reward balanced.
In other recent news, Pershing Square Inc. announced the pricing of a combined initial public offering (IPO) with Pershing Square USA, Ltd., totaling $5 billion in gross proceeds. The shares of both entities have commenced trading on the New York Stock Exchange. Following this IPO, will experience reduced performance fees, as the company will benefit from a reduction equal to 20% of the management fees earned by Pershing Square Capital Management from .
Additionally, several financial firms have initiated coverage on Pershing Square Inc. RBC Capital has given the company a Sector Perform rating with a price target of $40. Jefferies has also rated the stock as Hold, setting the same price target of $40. Meanwhile, BofA Securities has provided a Neutral rating, with a slightly higher price target of $42, based on a 45x multiple on its 2028 earnings per share estimate. These recent developments reflect the evolving financial landscape surrounding Pershing Square Inc.
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