Pershing Square stock surges following Jefferies price target hike

• Shares jumped 7.49 percent after a major brokerage firm raised its price target for the company.
• Following the analyst note, the alternative asset manager's share price traded higher at $58.98.
• Brokerage analysts expect performance-based fees for the business to climb significantly through next year.

Pershing Square (NYSE:PS) stock surged 7.49 percent to $58.98 following an updated coverage note from Jefferies.

Jefferies raised its target price on the company to $58 from $38 while maintaining a hold rating on the stock.

Analyst projections indicate that performance-based fees collected by the asset manager are expected to expand through next year.

LSEG data shows that nine of ten brokerages rate the asset management company as a buy or higher.

The stock currently trades at 64.03 times expected forward earnings, well above the broader industry median of 10.97.

Since its initial public offering in April, the alternative asset manager has recorded a stock price gain of 145.4 percent.

The company stated that its expanded fee projections align with broader capital management strategies across its fund portfolio.