Shares of Australia’s Perpetual, now trading on the ASX under ticker PPT, fell nearly 3% after a gain of 2.6% on Friday.

This comes after the company reported higher assets under management (AUM) for the third quarter of September.

Nevertheless, brokerages and analysts, including the teams at Citi, Macquarie, and Morningstar, have trimmed their price targets for Perpetual.

The cuts were prompted by what they see as near-term issues facing the company.

Citi has indicated doubts about a full cashflow turnaround, while Morningstar lowered its fair value estimate by 10% to A$27.50 per share.

Citi has also reduced its price target from A$24.80 to A$22.10, retaining a ‘neutral’ rating.

Macquarie too adjusted its predictions, foreseeing a potential upward movement in Perpetual’s future expenses and reducing its target price from A$30.00 to A$27.50.

Looking further ahead, Citi and Macquarie have fine-tuned their earnings-per-share (EPS) expectations for Perpetual in FY24, reducing them by 2% and 8.6%, respectively.

Perpetual (ASX:PPT) is an Australian investment firm offering a range of wealth management services, including asset management, financial advice, and trustee services.