Pinnacle Investment Management has guided to performance fees of less than $1m. While management noted several affiliates have outperformed relative benchmarks during the 1H, they remain below high water marks (HWM's).

The investment management firm expects a 2H skew for performance fees. However, Morgans decides to lower its FY23-25 EPS forecasts by -10%, -6% and -4.3%, respectively, on earnings revisions and an increase in the assumed risk-free rate.

The broker remains positive on the longer-term prospects for Pinnacle Investment Management. Add.

Sector: Diversified Financials.

Target price is $10.95.Current Price is $8.43. Difference: $2.52 - (brackets indicate current price is over target). If PNI meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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