Perpetual shares soar as UBS upgrades to 'buy'
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The news: Fund managers Perpetual and Magellan were the top two performing ASX 200 companies after morning trade as UBS upgraded its position on Perpetual and reiterated its 'buy' rating on Magellan.
The numbers: Perpetual (10.3%) and Magellan (7.3%) were leading gains at midday AEST, as the wider financial sector lowered 0.8%.
UBS upgraded Perpetual from 'neutral' to 'buy', saying the stock "appears oversold". Analyst Shreyas Patel noted that shares are now 18% below UBS' sum-of-the-parts valuation, revised up from $18.50 to $22.50.
UBS also reiterated its 'buy' rating on Magellan.
The context: Patel said the group's infrastructure fund is expected to drive second-half performance fees despite elevated outflow risks.
Shares in rival fundie Platinum Asset Management also rose 6% after UBS upgraded the stock from 'sell' to 'neutral', with shares down 30% since the announcement of its proposed merger with L1 Capital.
Elsewhere, UBS retained its 'buy' rating on GQG, which rose 0.7%, and its 'neutral' rating on Pinnacle Investment Management, which added 2.1%.
The source: UBS research
