CITI JUST DOWNGRADED BILL ACKMAN PERSHING SQUARE STOCK TO SELL , CITING A $45 PRICE TARGET VERSUS ITS $60 PEAK . IS PS STOCK OVERVALUED AFTER ITS APRIL IPO RALLY ?

What happened: Citi downgraded Pershing Square Inc. (PS) to sell from neutral, and BofA downgraded the stock to underperform from neutral, after shares fell about 25% from their Oct. 7 peak. Key numbers: PS opened at $24 on April 29, peaked at $60 on Oct. 7, and fell to $45. Citi kept a $45 target and cut its 2027 EPS estimate to $0.89 from $1.01. Why it matters: Both downgrades point to high valuation against modest or negative fund returns, and Pershing Square's fee revenue falls when asset levels drop. Citi named Howard Hughes Holdings as a potential upside catalyst.

Citi downgraded Pershing Square Inc. (PS) to sell from neutral, and BofA downgraded the stock to underperform from neutral, after shares fell about 25% from their Oct. 7 peak.

Both downgrades point to high valuation against modest or negative fund returns, and Pershing Square's fee revenue falls when asset levels drop. Citi named Howard Hughes Holdings as a potential upside catalyst.