Reporting season is starting to kick off, and as it does, the brokers have more to work with in order to assess the value of companies on their radar.
I've selected three new reports from Macquarie out this week, which identify stocks they think are undervalued at current levels.
Let's see who they like.
Image source: Getty Images
Pinnacle Investment Management Ltd (ASX: PNI)
Pinnacle this week reported a net profit of $176.7 million, up 31% on the previous financial year, or $138 million, up 21%, if subtracting the impact of the company's acquisition of PAM.
The company declared a final dividend of 31 cents, bringing total dividends for the year to 60 cents, in line with FY25, and reported net inflows of funds under management of $33.4 billion for the year.
Pinnacle Managing Director Ian Macoun said:
We continue to build Pinnacle to deliver sustained high rates of growth for many years into the future. Our distinct business model and Three Horizons growth strategy have built a highly diversified platform across asset classes, geographies and product formats. This platform has supported strong growth to date and provides multiple pathways for further growth, including in larger international markets where we have demonstrated that the Pinnacle model can operate successfully.
Macquarie has an outperform rating on the stock, citing attractive organic growth and potential accretive M&A.
The broker has a price target of $23.95 for the stock, compared with $19.53 currently.
Pexa Ltd (ASX: PXA)
Pexa shares are down 52.3% over the past 12 months, begging the question: Is it time for a recovery?
Macquarie has done an analysis ahead of the property settlement technology company's results, and said that settlement activity in New South Wales was down sharply in July, falling 11.6% compared to the same month in 2025.
Macquarie is still forecasting that more Tier-1 lenders will take up the use of the platform however, and have left their share price target for Pexa unchanged at $14.85, compared to $7.66 currently.
Pexa is scheduled to report its full-year results on 28 August.
Light & Wonder Inc (ASX: LNW)
Light & Wonder shares are also down over the past 12 months, losing 12.8% in value.
The company recently reported that net profit had increased 26% to US$120 million, with revenue up 2% to US$828 million.
The company said:
We continue to enhance our quality of earnings through a deliberate strategy to improve revenue quality, focusing on growing recurring revenue. Gaming operations, Grover and iGaming represented the primary growth drivers, each delivering double-digit year-over-year revenue increases, supported by continued operational momentum and content strength.
Macquarie reduced its price target from $200 to $180 on the back of the results, but this is still well above the current level of $118.98.
