Citi Downgrades Bill Ackman's Pershing Square to Sell on Valuation Concerns
Yahoo Finance ·
Shares of Pershing Square, the prominent investment firm led by Bill Ackman, experienced a notable pullback following back-to-back downgrades from Wall Street analysts. After debuting in April at $24 per share alongside the Pershing Square USA fund, the stock surged dramatically to peak at $60 on October 7. However, the equity has recently retreated 25% from that high, settling at $45. Citi adjusted its rating from neutral to sell while keeping its $45 price target intact, pointing to an excessive valuation of 54 times forward earnings projections. Furthermore, Citi trimmed its 2027 earnings estimate to $0.89 per share from $1.01, citing sluggish performance across major funds like Pershing Square Holdings and Pershing Square USA, alongside a cautious market outlook for the upcoming year. Despite these downward revisions, the projected 2027 figure still marks an improvement over the estimated $0.51 adjusted earnings for 2026, indicating that the primary concern remains the lofty valuation following the aggressive post-IPO rally.
AI 시장 분석
Bill Ackman's Pershing Square shares surged after their April listing, but recently plunged 25% from their peak following Citi's downgrade. Citi issued a sell rating and a $45 price target, citing an excessive forward valuation of 54x and sluggish fund performance. Investors are advised to exercise caution amid excessive multiples and uncertain market conditions.
하락 영향
- Investment Companies — Citi downgraded Pershing Square to sell, pointing out an excessive forward P/E valuation of 54x and sluggish fund operating returns, increasing downward pressure on the stock price.
DYAX 전담 분석
Citi lowered its 2027 earnings per share (EPS) forecast for Pershing Square from $1.01 to $0.89, pointing to slowing fund performance and a high valuation (forward P/E of 54x). This acted as an overheating burden on the stock, which had skyrocketed 150% since its April initial public offering (IPO), triggering profit-taking.
The future direction of the stock will be determined by whether earnings improvements in 2026-2027 meet expectations and the recovery speed of investment returns from major funds. Attention must be paid to the additional correction risk during the process of resolving overvaluation and earnings visibility.
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