mid-cap

One Investment Management Stock Likely to Face Resistance at Current Levels – PNI

Jul 08, 2025 | Team Kalkine

Read Time :10 Mins

One Investment Management Stock Likely to Face Resistance at Current Levels – PNI — Image source: shutterstock

PNI:ASX

Investment Type

Mid - Cap

Risk Level

Action

Rec. Price (AU$)

This report is an updated version of the report published on 8 July 2025 at 2:45 PM AEST.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management Group Limited (ASX: PNI) is an Australian-based multi-affiliate investment management company headquartered in Sydney. The company focuses on cultivating a diverse family of investment management firms, known as Affiliates, in which it holds significant minority equity interests.

Recommendation Rationale – SELL at AUD 20.92

Likely to Face Resistance: PNI is trading around R1 level recommended on 23 June 2025, and it can face resistance as broad market weakness puts pressure on stocks.
Macroeconomic and Geopolitical Uncertainty: The market retreat was partly driven by renewed US trade tensions, with President Donald Trump ruling out tariff extensions and imposing new penalties on imports from key trading partners, including a 50% tariff on copper and potential 200% duties on pharmaceuticals. Such trade actions increase global economic uncertainty, which can dampen investor appetite for growth and investment management stocks like Pinnacle.
Rising Staff Costs: Staff costs within Pinnacle parent increased by 14% (AU$2.7 million) PCP in H1 FY25, driven by additional headcount and higher remuneration including provisions for short-term incentives.
Limited Improvement in Equity Appetite: Despite market support, Pinnacle notes that institutional appetite for equities remained constrained in H1 FY25, with flows dominated by fixed income, credit, and private market assets. This limits growth potential in key equity strategies.

PNI Daily Chart

(Source: REFINTIV; Analysis by Kalkine Group)

Valuation Methodology: Price/Cash Flow Value Approach (FY Jun'26E) (Illustrative)

The stock might trade at a slight premium to its peers, considering the 5-year (five years to 31 December 2024) NPAT CAGR of 40.6%, and 140% YoY growth in Diluted EPS in H1 FY25. For conducting the valuation, the following peers have been considered: Hub24 Ltd (ASX: HUB), EQT Holdings Ltd (ASX: EQT), and Qualitas Ltd (ASX: QAL).

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 20.92, as of 8 July 2025 at 1:50 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 8 July 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Mid-Cap

Technical Analysis on One NYSE-Listed Uranium Stock- UEC

Mar 13, 2026 Team Kalkine

Small-Cap

One NASDAQ- Listed Semiconductor Stock at Resistance Level- HIMX

Mar 13, 2026 Team Kalkine

Blue-Chip

MQG Scales AUM and Private Credit Capabilities to Drive Growth

Mar 13, 2026 Team Kalkine

Small-Cap

Technical Analysis on Two ASX-Listed Stock – RAU, HRN

Mar 13, 2026 Team Kalkine

Mid-Cap

Technical Analysis on One NYSE- Listed Mining Stock- ERO

Mar 12, 2026 Team Kalkine

Disclaimer-

This report (“Report”) has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any advice provided in this Report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred in this Report. You should obtain a copy of the relevant Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any of the general advice in this Report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its reports (including this Report), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations to invest in securities and other financial products. Kalkine is not responsible for, and does not guarantee, the performance of, or returns on, any investments mentioned in this Report.

Kalkine does not issue, sell or deal in any financial products.

This Report may contain information on past performance of particular investments. Past performance is not a reliable indicator of future performance. Returns stated do not take into account transaction costs and taxes. To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Report, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information. Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Report or on the Kalkine website. Any such employees and associates are required to comply with certain, procedures and disclosures as required by law.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website including entities covered in this Report.

Past performance is not a reliable indicator of future performance.