Citi Downgrades Pershing Square to Sell

Citi downgraded Bill Ackman’s Pershing Square to Sell/High Risk from Neutral/High Risk, keeping its $45 price target and arguing that the share price has risen faster than earnings expectations, leaving limited near-term upside. The firm’s earnings estimates have changed little since its April IPO, while the stock’s valuation already reflects advantages such as permanent capital and recurring management fees. Citi said stronger investment returns or fundraising would be needed to support further gains, though it sees potential longer-term catalysts in Howard Hughes Holdings and Pershing Square’s investments. Wells Fargo has also expressed valuation concerns, and reports noted that a larger share float could add pressure to the stock.