Morningstar turns cautious on Pinnacle Investment Management despite FY26 growth

Morningstar

05/08/2026 21:53

** Morningstar trims its fair value estimate for Australia's Pinnacle Investment Management PNI.AX by 5% to A$13.30 per share
** Investment research firm says investors are focusing on co's strong growth trajectory while underestimating costs, margin pressures and balance-sheet constraints associated with sustaining that expansion
** Pinnacle on Tuesday reported 21% increase in FY26 underlying net profit after tax to A$138 million ($97.36 million)
** Morningstar's concern: Pinnacle's growth is becoming increasingly costly to achieve
** Expects fee margins to come under pressure as competition intensifies across the asset management industry, limiting firm's ability to translate strong FUM growth into earnings growth
** Morningstar now forecasts Pinnacle's earnings per share to grow by a little over 11% annually during the next five years, below its historical five-year average growth rate of 16%
** Eight of nine analysts rate stock "buy" or higher, one "hold"; their median PT is A$23.94 - LSEG data 
** Stock has risen 12.2% YTD 

($1 = 1.4174 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))