Street Calls of the Week
Investing.com - UBS raised its price target on Partners Group Holding AG (SIX:PGHN) (OTC:PGPHF) to CHF1,271.00 from CHF1,266.00 while maintaining a Buy rating.
The Swiss private equity firm has faced valuation pressure year-to-date due to its focus on steady fund-raising through evergreens and mandates during a period of volatile markets and muted transaction activity.
UBS noted that the U.S. dollar’s double-digit weakening against the Swiss franc has added financial pressure to Partners Group’s bottom line.
The investment bank now sees sector deal activity picking up sharply, with Partners Group exits materializing and performance fee contributions returning to through-the-cycle averages.
UBS believes the improved outlook is not reflected in current valuations, as the 12-month forward price-to-earnings ratio implies a 15% discount to the 10-year average, despite challenges around U.S. evergreen flows.
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