Citi Downgrades Bill Ackman's Pershing Square to Sell on Valuation Concerns

3-line summary

• Citi downgraded Pershing Square Inc (NYSE: PS) to "sell/high risk" from "neutral/high risk" in an October 9 research note, keeping its $45 price target, which implies 17.3% downside from the October 8 close of $54.44, according to Investing.com.
• Citi said the stock's rally has outpaced earnings expectations, with profit estimates largely flat since the April IPO as portfolio returns have been limited; it cut its 2027 EPS estimate to $0.89 from $1.01 while raising its 2028 estimate to $0.96 from $0.91 on a shift in performance-fee recognition timing.
• Citi valued existing funds at about $41 per share and potential value from future fund launches at about $9 per share, saying the business model's advantages — permanent capital, high recurring fee rates and strong incremental margins — are already priced in; it cited Howard Hughes Holdings' planned pivot to an insurance-focused business as a potential upside catalyst.

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