UBS "initiates" coverage of fund manager Pendal Group with a Buy rating and $7.95 target (note the broker last covered Pendal in May 2020).

Pendal is a global multi-boutique with $139bn of funds under management geographically diversified across Australia, UK/Europe and the US, and the stock has de-rated materially following significant net outflows in the Septemnber quarter, the broker notes.

But the Investment performance remains robust, fees are reasonable, and distribution is improving, hence the brtoker sees value at the price.

Sector: Diversified Financials.

Target price is $7.95.Current Price is $6.92. Difference: $1.03 - (brackets indicate current price is over target). If PDL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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