** Shares of Platinum Asset Management PTM.AX are down 1.4% at A$0.705

** Shares ease after gaining 10.6% in the previous week, 44.6% in July on board recommending merger with L1 Capital

** Morningstar raises fair value estimate for the combined entity to A$0.7 per share from A$0.5

** Investment research firm believes the merger to be 'sensible', says it improves outlook for co by limiting its earnings decline

** Three of 4 analysts rate PTM 'hold', one rates it 'buy'; median PT is A$0.54 - data compiled by LSEG

** YTD, shares up 2.2%

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))