Bill Ackman's stock is off to a great start since its debut. But analysts are leery from here

Pershing Square has rallied in the weeks following its initial public offering, making the stock look a little too expensive to investors, according to several shops on the Street. The Bill Ackman-founded asset management went public nearly a month ago . In May, the stock has surged more than 27%. PS 1M mountain PS 1-mo chart The stock, which trades under the ticker PS, debuted alongside closed-end fund Pershing Square USA, or PSUS, on the New York Stock Exchange. Their combined IPO raised $5 billion, pricing at the lower end of analysts' expectations. The investment firm's rally suggests there's a lot to like about its stock, some analysts say. But many analysts are still wary given the elevated valuation. "Since the Apr '26 IPO, PS has traded far above valuations of other asset managers, a result we found unsurprising directionally," Wells Fargo analyst Robert Ryan said Tuesday in a note to clients. "This is supported by meaningful, differentiating positives (e.g., historical fund performance, lack of redemption risk, high margins and operating leverage, and scarcity value as a traded hedge fund with an unusual asymmetric hedging strategy). We expect PS to continue to command premium valuations but not necessarily to the current extent." Wells Fargo has an equal weight rating on the stock. The bank also put a $37 price target on shares, suggesting roughly 4% upside from Friday's close. …