Is Perpetual Limited in the bargain bin?

Shares in Australian financial services group Perpetual Limited (ASX: PPT) are sitting at 52-week lows as brokers rush in to make valuation downgrades.

Morgan Stanley has an equal-weight rating on Perpetual, reducing earnings estimates and valuation by 10% and slashing its price target on the stock from $53 to $46.

Perpetual shares were at $41.44 at the time of writing, a significant slip from its $52.85 share price at this time last year with a steep downtrend notable in the past two months.

Morgan Stanley says the outlook for Perpetual should see global equities remain the growth option while the company improves on its business diversity.

This week Perpetual announced its latest Funds Under Management (FUM) were down $2.6 billion on the previous corresponding period to $30.2 billion at the end of March with market depreciation attributed to the decline.

Perpetual is struggling alongside peers such as Challenger Ltd (ASX: CGF), whose shares have dropped from a $14.35 high in December 2017 to $11.11 at the time of writing.

Macquarie Group Ltd (ASX: MQG) remains a standout in the sector with shares up slightly to $104.33 at the time of writing.

The Richest Man Alive Invests in This

The richest man in the world has just launched a $100 million investment fund and investors who don't take note could miss out on a massive opportunity.

And it isn't by sheer luck. He did it by looking to the future and investing in the big ideas of tomorrow.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!