Bell Potter upgrades Platinum to 'hold' but cuts forecasts, valuation
Make us a preferred source
Make us a preferred source on Google
The news: Bell Potter has upgraded its recommendation on Platinum Asset Management, but lowered its earnings forecasts and valuation on the fund manager following further outflows in May.
The numbers: Bell Potter lifted its recommendation from 'sell' to 'hold' but trimmed its target price from 52 cents to 49 cents. Platinum shares last closed at 50.5 cents.
Bell Potter reduced its earnings-per-share forecast by 1.1% for FY25, 12.6% for FY26 and 13.3% for FY27.
The context: Analyst Marcus Barnard said the upgrade followed Platinum's recent share price slump.
He noted that Platinum's merger terms with rival fund manager L1 Capital have been adjusted in favour of L1, and said the move is unsurprising given Platinum's outflows in April and May. The proposed merger was announced on 1 May.
Platinum has seen funds under management decline by $2 billion, from $10.3 billion at the end of March to $8.3 billion at the end of May.
The source: Bell Potter research
