The group announced its share of fY21 performance fees, crystalised by seven affiliates, will be $19.5m. Morgans notes net inflows have been extremely strong in FY21and expects another circa $1bn in net inflows over May/June.
Closing funds under management (FUM) is estimated to be $89bn by the broker, up 52% on the pcp. It’s believed there’s structural growth embedded in the business (maturing profile of existing affiliates and investment strategies) and future optionality from adding new affiliates.
The analyst upgrades FY21-23 EPS forecasts by 5.6%, 8.1% and 6%, respectively, which reflects a mark-to-market of FUM and higher performance fee assumptions. Thus, the target price rises to $11.85 from $11.14 and the Add rating is unchanged.
Sector: Diversified Financials.
Target price is $11.14.Current Price is $11.29. Difference: ($0.15) – (brackets indicate current price is over target). If PNI meets the Morgans target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
