UBS hikes price target on Platinum Asset Management after shareholders clear L1 merger

The news: UBS has hiked its price target on Platinum Asset Management after the fund manager's proposed merger with L1 Capital received shareholder approval on Monday.

The numbers: UBS, which remains 'neutral' on Platinum, lifted its price target from 53 cents to 79 cents per share.

Platinum shares were down 0.69% to 72 cents in early trading.

UBS significantly increased its earnings per share forecasts by 11% in FY26, 19% in FY27 and 62% in FY28, to reflect L1's contribution and cost synergies post-merger.

What they said: "We look favourably on the merger as it has reinstated terminal value to legacy Platinum operations and expect L1 to achieve strong organic earnings growth," said UBS analyst Fraser Noye.