Pinnacle Investment’s affiliates have crystallised $40.7m in gross performance fees for the second half, ahead of Macquarie’s estimates. The company’s net profit share was $8.4m, representing around 21% of the gross affiliate performance fee versus an historical average of around 25%.
The broker observes performance fees are a greater component and while more reliable part of earnings and there is an attractive growth outlook with potential to add accretive M&A. Outperform maintained. Target rises to $12.28 from $12.26.
Sector: Diversified Financials.
Target price is $12.28.Current Price is $11.12. Difference: $1.16 – (brackets indicate current price is over target). If PNI meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
