Ord Minnett has released an update on PAC today. A summary is...

Ord Minnett has released an update on PAC today. A summary is below:

Ord Minnett rates PAC as Buy (1) -
Pacific Current Group has acquired a 24.9% equity stake in Avante Capital Partners, a private credit fund manager based in the US, for up to -US$40m. The acquisition is expected to yield US$1.5-2.5bn in management fees from 2024.

Ord Minnett considers the acquisition "sensible" and in line with the structure of recent deals made by the company.

The broker expects updates on potential corporate interest over the next 4-6 weeks, although Pacific Current is yet to formally respond to the Regal Partners ((RPL)) proposal. Buy rating retained. Target rises to $12.20 from $12.00.

Target price is $12.20 Current Price is $11.20 Difference: $1
If PAC meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

	Column 1
0	Ord Minnett forecasts a full year FY24 dividend of 46.00 cents and EPS of 70.60 cents.At the last closing share price the estimated dividend yield is 4.11%.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.86.

Forecast for FY25:

	Column 1
0	Ord Minnett forecasts a full year FY25 dividend of 54.00 cents and EPS of 82.70 cents.At the last closing share price the estimated dividend yield is 4.82%.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.54.

Cheers Westwind