Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Macquarie Research maintains “Outperform” rating on Pinnacle Investment Management Group (PNI).

  • Price target of AUD 25.33 implies nearly 10% upside from current trading levels.

  • Pinnacle reports 49% year-on-year surge in FY25 net profit after tax to AUD 134.4 million.

Pinnacle Investment Management Group Ltd (ASX:PNI) continues to impress analysts, with Macquarie Research reaffirming its “Outperform” rating, likely to be backed by the company's financial performance for FY25 and significant fund inflows across its domestic and international platforms.

Macquarie analyst Tim Lawson CFA maintained his positive outlook on the company, placing a target price of AUD 25.33, representing a 9.99% upside from the current share price of AUD 24.58. 

Financial Performance in FY25

For the financial year ended 30 June 2025, Pinnacle reported a net profit after tax (NPAT) of AUD 134.4 million, marking a significant 49% increase over FY24’s AUD 90.4 million. This translated to a diluted earnings per share of 62.4 cents, up from 45.5 cents a year earlier.

Shareholders were rewarded with a final dividend of 27.0 cents per share (franked to 88%), bringing the full-year dividend to 60.0 cents (franked to 79%), an increase of 43% over the prior year.

Growth in Funds Under Management and International Inflows

Pinnacle’s growth story was further underscored by a sharp rise in funds under management (FUM). As of 30 June 2025, aggregate Affiliate FUM reached AUD 179.4 billion, up 63% year-on-year from AUD 110.1 billion. Retail FUM rose to AUD 39.7 billion, a 38% increase from the prior year.

On the international front, Pinnacle recorded AUD 4.8 billion in net inflows, driven by contributions from the UK, Europe, and Canada. Notably, international FUM grew 180% year-on-year to AUD 51.4 billion. The firm made strategic hires in the UK, New Zealand, and Canada, supporting its overseas expansion efforts and building on its diversified distribution platform.

Affiliate Outperformance and Cash Reserves

Pinnacle’s unique multi-affiliate model continued to deliver, with 91% of its five-year Affiliate strategies outperforming respective benchmarks as of 30 June 2025. This consistent alpha generation significantly contributed to performance fees, which reached AUD 46.6 million post-tax, up from AUD 31.2 million in FY24.

The company also reported cash and principal investments totalling AUD 463.5 million, supported by a fully drawn AUD 100 million CBA facility.

Analyst Confidence 

The stock has also garnered other positive analyst ratings, with Wilsons assigning an “Overweight” stance and a higher price target of AUD 26.12.