Citi downgraded Pershing Square (PS), the investment firm run by Bill Ackman, to sell from neutral but kept a $45 price target, citing a valuation of 54 times forward earnings and a 2027 EPS estimate cut to $0.89 from $1.01 due to tepid fund performance. BofA also downgraded the stock to underperform and cut its target from $54 to $38, implying a 15% decline over the next 12 months. Shares opened at $24 after the April IPO, peaked at $60 on Oct. 7, and have since fallen about 25% to $45. Revenue from management fees falls when asset levels drop, and the firm plans to launch Pershing Square Ventures by the end of 2026. Citi views its stake in Howard Hughes Holdings, which just acquired Vantage Group Holdings, as a potential upside catalyst.
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