Why did Morgans just lower its outlook on two small-cap shares

Morgans has adjusted its view on these two stocks.

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Key points

  • Morgans has lowered its price targets for Findi Limited and Pantoro. 
  • Findi Limited's share price has dropped over 52% YTD with headwinds impacting 1H26 results. 
  • Pantoro shares have surged 238.06% YTD, but a softer-than-expected 1Q operating result led Morgans to trim its price target to $5.02. 

The team at Morgans has released fresh analysis on two ASX small-cap shares. 

The broker has lowered price targets for Findi Ltd (ASX: FND) and Pantoro Gold Ltd (ASX: PNR). 

These two small-cap shares have moved in completely different directions over the last year. 

Here's what the broker had to say. 

Findi

Findi engages in the financial payments and technology business. The firm through TSI India, provides electronic surveillance and power management services to banks and payment solutions.

Its share price has tumbled more than 52% year to date, and despite an optimistic price target from the team at Morgans, it seems the broker's outlook is changing. 

Morgans said headwinds have impacted 1H26 results:

We think FND is probably tracking ~six months behind where it hoped to be, albeit management expects the company to return to more normal business run rates by 4Q26.

The broker has made sizable downgrades to FND FY26F/FY27F EPS (>-20%) reflecting revised FY26 company guidance, together with more conservative overall future earnings estimates. 

Its price target is lowered to $5.42 (from A$7.57). 

The broker said that whilst acknowledging FY26 is shaping as a transitional year for Findi, it thinks all emerging market stories ultimately need investor patience, together with a focus on the bigger picture. 

In our view, FND's underlying operating momentum remains strong (highlighted by operating revenue being expected to increase ~+60% in FY26), whilst the company's IPO of its Indian operating business remains a unique near-term catalyst.

Based on the revised price target, the broker still sees long term upside of 154.38%. 

Pantoro

This small-cap ASX stock has had a very different year compared to Findi. 

Pantoro shares have flown 238.06% year to date

It is a gold producer and exploration company based in Western Australia.

The team at Morgans seems to believe the bull run is ending for this gold stock. 

It has trimmed its price target to $5.02 (previously $5.92). 

Based on this target, it seems this small-cap stock is now trading slightly above fair value. 

It closed yesterday at $5.24. 

The basis of this trimmed price target was a softer-than-expected operating result for 1Q.

A series of isolated operating issues and underground mine sequencing drove lower head-grade and thus lower ounce production and higher unit costs. PNR has reiterated its FY26 guidance. We have adjusted our forecasts to reflect the 1Q miss.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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