Jefferies Sets $40 Target on Pershing Square, Fund Acquires 5.6M Microsoft Shares
PS•Jefferies initiated coverage of Pershing Square with a Hold rating and $40 price target, implying 12.1% upside. Bill Ackman’s fund acquired 5.6 million Microsoft shares and 1.8 million Amazon shares in Q1, slashed Alphabet exposure by 95%, and shares dropped 5.4% on the update day.
1. Jefferies Initiates Coverage with Hold Rating
Jefferies began formal coverage of Pershing Square, assigning a Hold rating alongside a $40 price target, which implies a 12.1% uplift from recent share levels. This marks the first analyst initiation by the firm on the fund’s stock.
2. Q1 Portfolio Adjustments Highlight Fund Strategy
In the first quarter, Bill Ackman’s fund purchased 5.6 million Microsoft shares and 1.8 million Amazon shares, elevating these positions to its second and fourth largest holdings. Simultaneously, the fund trimmed its Alphabet stake by 95%, signaling a reorientation toward perceived undervalued technology assets.
3. Stock Reaction and Trading Dynamics
On the day of the analyst update, Pershing Square shares declined by 5.43%, trading between $35.28 and $38.59 intraday. Over the past 12 months, shares have oscillated between $22.01 and $54.94, underscoring notable volatility.
