JPMorgan does not see significant earnings risk at P10 from Crossroads

JPMorgan analyst Kenneth Worthington says P10’s stock price has been struggling due to concerns about the company’s relationship with Crossroads and perceived conflicts of interest. Based on JPMorgan’s latest understanding of the fact pattern, the firm “does not see clear significant earnings risk” to P10 from these relationships and reputational risk as limited. Given the limited if any fundamental impact on P10, the firm believes the recent weakness in the stock should provide an attractive buying opportunity for investors. It acknowledges, however, that alternative asset managers are fundamentally trust businesses, and therefore potential noise associated with Capital Plus / Crossroads and Robert Alpert could have a “deleterious” impact on the stock, given P10’s limited trading liquidity and quality conscious investors. The analyst keeps an Overweight rating on the shares with a $15.50 price target.