Pershing Square Stock Drops Following BofA Downgrade to Underperform
Shares of Pershing Square Inc. (NYSE:PS) declined sharply after BofA Securities lowered its rating on the asset management firm from Neutral to Underperform and reduced its price target from $54 to $38 per share. The stock fell over 12% as analysts pointed to lagging investment performance following three years of solid gains.
The firm's flagship fund, Pershing Square Holdings, has seen its net asset value decline 8% year-to-date, contrasting with a 15% rise in the S&P 500 index. While wider stock market gains have been driven primarily by semiconductor and technology hardware companies, the portfolio managed by Bill Ackman remains heavily focused on consumer, financial, and technology platform businesses. Key holdings in the portfolio include Uber Technologies, Inc. (NYSE:UBER), Brookfield Corporation (NYSE:BN), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms Inc Class A (NASDAQ:META).
Investors will be watching whether the asset manager can bridge the gap between its portfolio composition and current market trends, as well as how discounts to net asset value evolve. Pershing Square Holdings currently trades at a 36% discount to its net asset value, while Pershing Square USA trades at a 23% discount.
Key points
- BofA Securities downgraded Pershing Square Inc. (NYSE:PS) from Neutral to Underperform and reduced its price target to $38 from $54.
- Net asset value at Pershing Square Holdings is down 8% year-to-date, trailing the S&P 500 index gain of 15%.
- Market gains have centered on semiconductors and hardware, while Pershing Square's portfolio favors consumer, financial, and tech platform stocks.
- Major portfolio holdings include Uber Technologies, Inc. (NYSE:UBER), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms Inc Class A (NASDAQ:META).
- Pershing Square Holdings and Pershing Square USA trade at discounts to net asset value of 36% and 23%, respectively.
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How we writeDisclaimerQuestions and answers
Why did Pershing Square stock fall?
BofA Securities downgraded Pershing Square Inc. from Neutral to Underperform and lowered its price target to $38, citing underperformance relative to the S&P 500 in 2026.
How is Pershing Square performing compared to the broader market?
Net asset value at flagship Pershing Square Holdings is down 8% year-to-date, compared with a 15% gain for the S&P 500 index.
What stocks does Pershing Square hold?
Pershing Square holds positions in companies including Uber Technologies, Inc., Brookfield Corporation, Microsoft Corporation, Amazon.com, Inc., and Meta Platforms Inc Class A.