PDL - Morgans rates the stock as Hold
PUBLISHED
2022-04-06
Content
Morgans sees merit in the non-binding indicative merger offer from Perpetual Limited ((PPT)) at $6.23/share. Benefits are expected from significant cost synergies and the ability to leverage scale in offshore markets.
The broker believes there is potential for the offer price to be improved though downgrades its rating to Hold from Add. Should the merger lapse, there is considered to be better risk/reward elsewhere in the sector. The $5.65 target price is maintained.
Sector: Diversified Financials.
Target price is $5.65.Current Price is $5.29. Difference: $0.36 - (brackets indicate current price is over target). If PDL meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).