Citigroup initiated coverage of Pershing Square (PSUS) with a Buy rating following its late April IPO.
The firm established a $50 price target for the stock. This valuation exceeds the $37 to $42 range set by other Wall Street firms.
Citi cited the company’s permanent capital structure and high recurring fee revenue as primary growth drivers. Analysts also expect growth from new fundraising and fees related to its investment in Howard Hughes Holdings.
The bank classified the stock as high risk while projecting the asset manager will trade at a premium.