I don't have much respect for UBS, but here's their latest spray, in what i interpret as vested interests in seeing PDL punished just like MFG.
Short much?UBS cuts Pendal valuation, says Perpetual may improve offer
Tom Richardson
Broker UBS has cuts its Pendal valuation from $7.20 per share to $6.60 per share. At a market price of $5.30 per share on Wednesday, Pendal shares trade on 11.6 times UBS’s estimate for its earnings per share in FY 2022, with a 7 per cent dividend yield.
Perpetual’s $6 per share cash and scrip bid for Pendal has been rejected by the fund manager’s board, although UBS says Perpetual may return with an improved offer.
“With the stock looking oversold and expectations low, we believe this is a reasonable outcome in this context,” UBS said. “The announced $100 million on-market buy-back post-result should provide some support for the stock (if executed). On our revised earnings forecasts, hypothetically, if PPT were to lift its offer price to our $6.60 valuation by way of increased cash (debt funded), it would be still be ~7 per cent accretive.”
