MM, why the negative view on PNI?

Hi Charles,

Thanks for the question & positive feedback. as always much appreciated. I believe the confusion comes down to timeframes, back in February we wrote, note the highlighted parts:

“PNI announced their half-year results after market yesterday, trading to 4-week lows during the session on some weak numbers. While revenue was marginally lower, profit fell 24% to $30.5m on lower performance fees and investment in growth initiatives. An increase in the average base fee margin to 53.5bps was positive, however, the company struggled to generate business and saw net outflows of $1.5b. We continue to like the company over the medium term, positive on its diversified income streams and performance fee upside, however, these results justify our near-term bearishness with the need to see a turnaround in FUM flows and benefits from their investment in the business.”

• At the time we were neutral to negative and the stock has since drifted -3.2% lower.

Also, note the “Target Price” you mentioned is broker consensus, not MM’s view.

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Pinnacle Investment MGT Group (PNI)

LAST UPDATED 18/05/2023 17:07

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Pinnacle Investment MGT Group (PNI)

LAST UPDATED 18/05/2023 17:07