This report is an updated version of the report published on 18 July 2025 at closing market price.

Platinum Asset Management Limited (ASX: PTM)

PTM functions as a non-operating holding company, primarily involved in offering financial services. It operates through the Funds Management, Investments and Other business segments.

Recommendation Rationale – SELL at AUD 0.650 

• Financial Highlights: In 1HFY25, total revenue fell by 25% YoY to AUD 69.4mn from AUD 92.4mn in 1HFY24. This decline was primarily due to lower management fees. Consequently, statutory net profit after tax also saw a drop, decreasing by 55% YoY to AUD 15.9mn from AUD 35.6mn in 1HFY24.
• Trading Near the Resistance: PTM stock has surpassed its R1 level recommended on 11 July 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, EV/EBITDA, Price/Cash flow, Price/Book, Price/Earnings) are higher than median of the Financial Sector.
• Market Risk: The business is exposed to global equity market volatility, changes in economic outlooks, and investor sentiment, affecting both fund valuations and investor confidence.

PTM’s Daily Price Chart

Valuation Methodology: Price/Book Value Multiple Approach (FY June'26E) (Illustrative)

Stock might trade at a slight discount to its peers considering the YoY drop in revenue in 1HFY25, YoY lower NPAT in 1HFY25, and decreased net gain from seed investments. For conducting the valuation, the following peers have been included: EQT Holdings Ltd (ASX: EQT), Magellan Financial Group Ltd (ASX: MFG), Challenger Ltd (ASX: CGF), and others have been considered.

Considering that the stock is approaching its R2 level, macroeconomic uncertainty, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the closing price of AUD 0.650, as of 18 July 2025.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 18 July 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.