The shares of Partners Group, a Swiss asset manager, have declined 29% this year, dropping from 1,030 francs to 730 francs amid broader market strength. The Swiss Market Index (SMI) has gained 10% since January, reaching a record 14,669 points in mid-August, underscoring the divergence between the company's performance and the broader equity market.
Investor withdrawals from Partners Group's private-market funds have accelerated since the start of 2024, reflecting growing concerns over liquidity in the private credit and equity segments. In June, the company restricted redemptions from one of its private-equity funds, triggering a 16% single-day share price decline. Short seller Grizzly Research had earlier alleged that Partners Group overstated the value of its Evergreen funds, a claim the company denied.
Analysts remain divided on the company's medium-term outlook. Deutsche Bank's analyst downgraded Partners Group to 'Hold' from 'Buy' in early August, citing expectations of slower normalization in Evergreen fund growth and weaker asset under management and earnings per share growth compared with European peers. The bank reduced its price target to 785 francs from 840 francs. Citigroup's analyst was more bearish, projecting a 7% downside to 680 francs.
Julius Bär's analyst maintained a positive stance, reiterating a 'Buy' rating despite lowering the price target to 1,100 francs from 1,200 francs. The firm highlighted the company's 6.3% dividend yield and a progressive payout increase to 46 francs over recent years, alongside a historically low forward price-to-earnings ratio of 14x, the lowest in 15 years.
