2 ASX 200 financial shares to buy and 1 to sell: experts

Financials outperformed every other sector in FY25. What should you do now with these 3 stocks?

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ASX 200 financial shares outperformed every other market sector in FY25 and are holding firm in FY26.

The S&P/ASX 200 Financials Index (ASX: XFJ) lifted 24.5% and delivered total returns, including dividends, of 29.4% in FY25.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) increased by almost 10% and produced total returns of 13.8%.

In FY26, ASX 200 financial shares are underperforming the market but holding at near-record levels.

The financials index is up 0.18% in FY26 so far, while the ASX 200 is 4.1% higher amid earnings season continuing.

In this article, experts reveal their ratings and price targets on three financial stocks.

Interested in ASX 200 financial shares in FY26?

Pinnacle Investment Management Group (ASX: PNI

On The Bull this week, Toby Grimm from Baker Young revealed a buy rating on this global multi-affiliate investment management firm.

Pinnacle Investment Management shares closed at $21.70 yesterday, down 2.43%.

Grimm said:

The company's recent full year results confirmed underlying fund performance and overall investment flows, particularly at new affiliate Life Cycle, continue to impress.

Pinnacle posted net profit after tax of $134.4 million in fiscal year 2025, up 49 per cent on the prior corresponding period.

Total dividends of 60 cents a share in fiscal year 2025 were up 43 per cent.

With markets invariably at or around record highs, we expect the company to generate increasing performance fees, as high watermark restraints are cleared.

This ASX 200 financial share has had a strong run with the price rising 26% over the past 12 months.

Grimm added:

We view any dip in PNI's share price as an opportunity to add stock to portfolios.

Regal Partners Ltd (ASX: RPL)

Ord Minnett has a buy rating on this ASX 200 financial share and raised its 12-month target price from $3.60 to $4 earlier this month.

The Regal Partners share price closed at $3.13, up 0.32% yesterday.

Therefore, Ord Minnett is expecting this ASX 200 financial share to gain nearly 28% in new value over the next 12 months.

Ord Minnett said Regal Partners posted a solid June quarter trading update.

Regal Partners reported a 7% quarter-over-quarter (QoQ) increase in funds under management (FUM) and upgraded guidance for 1H CY25 fee revenue and earnings.

The broker said the increase in fee-generating FUM to $17.7 billion was 9% ahead of its expectations.

Ord Minnett commented ahead of Regal's 1H FY25 results, which are due to be released next Monday, 25 August.

The broker said:

Regal now sees first-half performance fees of "at least $40 million", up from "at least $35 million" as recently as early June.

Incorporating the increased expectations for performance fees and marking FUM to current market values leads to significant upgrades in our EPS estimates – our forecasts rise 48.4%, 16.3% and 10.3% for CY25, CY26 and CY27, respectively.  

National Australia Bank Ltd (ASX: NAB)

Morgans has a sell rating on NAB shares after the major bank posted its 3Q FY25 update on Monday.

NAB reported cash earnings of $1.77 billion in the June quarter, flat year over year and down 1% on the 1H FY25 quarterly average.

Revenue was 3% higher in the third quarter, and the net interest margin (NIM) increased by 8 basis points.

Morgans raised its 12-month price target on this ASX 200 financial share to $31.15.

Yesterday, NAB shares lifted 0.77% to $40.54 apiece.

If Morgans' price target is right, the ASX 200 bank share will fall by 23% over the next year.

Morgans said:

NAB followed [Westpac Banking Corp (ASX: WBC)] in reporting a stronger than expected 3Q25 trading update.

FY26-27 forecasts upgraded. Target price lifted to $31.15/sh.

We recommend clients SELL overweight positions into NAB's share price strength.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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