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Pershing Square (PS) shares fell 12% on Wednesday following a premarket downgrade from Bank of America, which moved the stock to Underperform from Neutral and slashed its price target to $38 from $54.
The move marks the second downgrade for the stock in two days, following a cut to Sell by Citi on Friday.
Bank of America lowered its earnings per share estimates for 2026, 2027, and 2028, citing a delay in the launch of the PSV fund.
The bank also adjusted its long-term return assumptions and reduced the valuation multiple applied to Pershing Square to align with how it prices other asset managers in its coverage, reflecting a lower expected growth rate.
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