Suitor PPT fell 6.6% yesterday following the bid taking the companies valuation down to 12x while the stocks forecast to yield over 7% during the next 12-months. Perpetual is more diversified than others with a private wealth business along with a very stable trustee services operation to counter balance more volatile funds management revenue.
If the PDL fails PPT will be trading at an attractive discount to last week’s price although if PPT makes a higher bid we could see the $30 area sooner rather than later.
If the current bids successful we believe it’s a good deal for PPT adding value through synergies.
MM likes PPT around $30
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