On Friday, Citi analyst Nicholas Herman adjusted the price target for Partners Group Holding AG (PGHN:SW) (OTC: PGPHF), increasing it to CHF1,480 from the previous CHF1,290. The firm continues to endorse the stock with a Buy rating.
Herman’s analysis points to anticipated positive developments for the company in the upcoming year, including a rebound in fee margins starting in the second half of 2024, a faster growth in fee-paying assets under management (FPAUM) compared to the sector, and potential earnings surpassing consensus expectations due to higher performance fees and increased assets under management from fiscal year 2026 onwards.
The report suggests that Partners Group is in a unique position to penetrate the U.S. wealth market successfully over the medium term, which Citi believes is currently undervalued by the market. The analyst expects the company’s efforts and the impact of its partnership with BlackRock (NYSE:BLK) to become more evident to investors as they gain better visibility into future developments, particularly into 2026.
Partners Group’s current share price is said to trade in line with or slightly below its historical average. Despite this, Citi maintains an optimistic outlook for the company, distinguishing it as the only European manager with a significant opportunity to make headway in the U.S. market.
The analyst’s commentary underscores the non-consensus Buy rating on Partners Group, suggesting that the market has yet to fully appreciate the company’s potential, especially in terms of its strategic moves and partnerships.
Citi’s revised price target and continued Buy rating reflect confidence in Partners Group’s growth trajectory and its ability to outperform within its sector, driven by strategic initiatives and market expansion efforts.
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