UBS Turns Bullish on Perpetual

Highlights:

• Perpetual Limited (ASX: PPT) surged 9.5% at the time of writing after UBS upgraded the stock to “buy” from “neutral”.
• UBS set a price target of $22.50, indicating over 11% upside potential in the short term.
• The upgrade reflects confidence in Perpetual’s earnings growth, cost control, and acquisition integration strategy.

Perpetual Limited (ASX: PPT) saw its shares surge 9.5% at the time of writing after investment bank UBS upgraded its rating on the stock from “neutral” to “buy”. The upgrade comes with a new short-term share price target of $22.50, implying a potential upside of more than 11% based on recent trading levels. The re-rating reflects renewed confidence in Perpetual’s earnings outlook, improved operational momentum, and the potential for upside in a volatile but recovering asset management environment.

Strong Momentum in Challenging Market

UBS analysts cited Perpetual’s positioning in key market segments and recent strategic developments as factors supporting its stronger outlook. The upgrade follows improving sentiment toward fund managers amid signs of stabilisation in global equity markets and interest in value-based investment strategies—both areas where Perpetual has deep expertise. Analysts also pointed to recent cost control measures and integration progress following acquisitions, which are expected to contribute to underlying growth in earnings over the coming quarters.

Market Responds Positively

 Investors welcomed the revised outlook, pushing Perpetual shares sharply higher during the day’s trade. The double-digit rally highlights the market’s sensitivity to broker insights and investor appetite for beaten-down but fundamentally strong financial services stocks.

Looking Ahead

With UBS now forecasting stronger near-term growth, attention will turn to whether Perpetual can meet earnings expectations and capitalise on shifting market dynamics. A continued focus on cost efficiency, platform integration, and asset growth will be key to sustaining the current momentum. The upbeat analyst call has helped position Perpetual as one of the day’s top-performing ASX stocks, injecting fresh optimism into the broader fund management sector.

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