Morgans lifts its target price to $14.48 from $11.85 though lowers its rating to Hold from Add, as the stock is now trading in-line with valuation. The company reported FY21 group profit 107% higher than the previous corresponding period (pcp).
Group funds under management (FUM) closed up 52% on the pcp, driven by net inflows and investment performance. Net inflow momentum accelerated in the second half, with retail inflows of $2.6bn. The broker expects strong flows of $8bn in FY22.
The analyst points out FY22 commences with starting FUM greater than 20% above average FY21 levels, supporting a ‘baseline’ earnings level (before performance fees) around FY21 levels.
Sector: Diversified Financials.
Target price is $14.48.Current Price is $15.16. Difference: ($0.68) – (brackets indicate current price is over target). If PNI meets the Morgans target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
