BofA Securities initiated coverage on Pershing Square Inc (NYSE:PS) with a Neutral rating and a price target of $42.00.
The target is based on a 45x multiple on 2028 EPS, implying a 20% total return. The stock trades at $35.67, down 13% over the past week despite strong year-to-date gains.
Pershing Square is a US asset manager focusing on concentrated large-cap equities with asymmetric hedges. It is the first hedge fund to market directly to US individual investors after a 2025 SEC policy shift.
BofA noted that 96% of fee-paying AUM is permanent and non-redeemable, reducing forced-selling risk. The company earns fees on fund appreciation, similar to Berkshire Hathaway—hence the “baby Buffett” moniker.
Pershing Square posted 67% revenue growth and 18.7% ROA. However, the stock may be overvalued at current levels. Recent news includes the completion of $5 billion IPOs for Pershing Square USA, Ltd. and Pershing Square Inc.
