Perpetual is the lower beta/risk play In the space which is illustrated by the stock’s comparatively small -16.2% pullback so far this year, this support is aided by the company’s stability offered by the trust services business and wealth management arm. PPT as would be expected is trading on a higher valuation than PDL of 11.4x Est P/E for 2022 while it’s also forecast to pay a healthy yield of around 7% fully franked.
We could label the space as a “yield trap” over the last 12 months but cheap valuations and high yields have a habit of snapping back strongly when the market perceives enough is enough, we might not be there yet but MM believes there is value clearly emerging in this part of the market.
MM is neutral PPT
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