** Morningstar calls Pinnacle Investment Management's PNI.AX first-half results "messy" after profit slips

** PNI's first‑half net profit after tax fell 11% YoY, weighed by softer performance fees and lower principal investment returns

** Morningstar says the market is fixated on strong current flows while overlooking potential margin erosion from growth‑driven investments and warns that the shift toward higher‑margin products and channels may face long‑term fee pressure

** Adds, while the market may be encouraged by potential earnings upside from fully acquiring Pacific Asset Management, it believes PNI has paid a fair price and sees no meaningful accretion to its intrinsic valuation

** Retains fair value estimate at A$17 per share

** Stock up 3.5% YTD as of last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))