Goldman Sachs downgrades Partners Group stock rating on earnings concerns

Goldman Sachs has downgraded its rating on Partners Group Holding AG shares to "Sell" from "Neutral" due to concerns over earnings, and lowered its price target to CHF610.00 from CHF770.00. The firm believes Partners Group's stock has dropped about 29% over the past year, and continues to underperform consensus earnings per share.

This is attributed to weaker growth expectations and lower performance fees in the evergreen business. Goldman Sachs expects further estimate downside, citing the unwinding of the evergreen growth narrative, increased competition, and weaker performance of the mature evergreen franchise. They also expect limited fee-related earnings growth over the next three years.

Despite these challenges, Partners Group offers a relatively high dividend yield and has raised its dividend for 17 consecutive years.