S&P/ASX 200 Index (ASX: XJO) shares are down 0.44% on Friday at 8,671.4 points.
Meanwhile, Ord Minnett has just released two new notes on two buy-rated ASX 200 shares with improved 12-month price targets.
Let's check them out.
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2 ASX 200 shares to buy now: broker
Pinnacle Investment Management Group Ltd (ASX: PNI)
The Pinnacle Investment Management share price is $21.79, down 0.27% today, and up 37% over the past 12 months.
Pinnacle offers third-party distribution, along with fund infrastructure and support services, to affiliates and investment managers.
Pinnacle is also a corporate trustee and the responsible entity for retail and wholesale investment trusts.
Ord Minnett has a buy rating on this ASX 200 financial share and has just increased its price target by 5%.
The broker lifted the 12-month target from $24.80 to $26.10. This suggests a potential upside of almost 20% for investors from here.
Ord Minnett has upgraded its earnings estimates for Pinnacle for FY26 and FY27 due to anticipated growth in funds under management.
It also reduced its FY25 forecast to account for lower expected performance fees in the second half of FY25.
Ord Minnett said:
Despite our performance fee downgrades, we still see strong inflows for the June quarter, noting our forecast is circa 6% above broader market expectations.
Post the review, our FY25 EPS estimate falls 3.2%, while our FY26 and FY26 forecasts increase 3.8% and 5.1%, respectively.
This leads us to raise our target price on Pinnacle to $26.10 from $24.80, while we maintain our Buy recommendation.
Cleanaway Waste Management Ltd (ASX: CWY)
The Cleanaway share price is $2.87, up 0.7% on Friday, and up 5% over the past 12 months.
Waste Management provides waste management, industrial, and environmental services in Australia.
Ord Minnett has an accumulate rating on this ASX 200 industrial share.
Yesterday, the broker issued a new note and slightly raised its 12-month price target from $3 to $3.10.
This implies a potential upside of 8% for investors from here.
Ord Minnett said it had updated its Cleanaway model to incorporate higher earnings from acquisitions and some adjustments to operational forecasts.
Cleanaway recently bought Citywide Waste in Melbourne for $110 million. This acquisition was completed on 1 July.
The company is also in the process of buying Contract Resources for $377 million. The ACCC approved the deal on 4 July.
Ord Minnett is positive about the acquisitions, commenting:
Melbourne-based Citywide Waste services circa 1500 council, commercial and industrial customers, including Melbourne City Council, and also involves a 35-year lease on the Dynon Road transfer station in West Melbourne.
The much larger Contract Resources acquisition, due to be completed by the end of July, is also a sound business move.
The acquisition provides Cleanaway with exposure to the resources sector with its specialist operations in decommissioning and remediation work, often in remote locations.
The broker upgraded its FY26 earnings per share (EPS) forecast by 2.8% and the FY27 estimate by 7.6%.
This justified an increase in the price target, the broker said.
