OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Shaw and Partners rates AL3 as Buy, High Risk

Shaw and Partners highlights AML3D as a key beneficiary of new US tariffs and reshoring policy, which are expected to accelerate demand for additive manufacturing in defence, shipbuilding, and industrial sectors.

The broker notes AML3D’s collaboration with US defence contractors and alignment with the Navy’s manufacturing needs positions it to benefit directly from nearly US$1bn in additive manufacturing (AM)-related shipbuilding investment.

N.B. The US Department of Defense is a major adopter of AM, citing it as a national security imperative.

The analyst expects the company's Arcemy systems to be increasingly deployed in the US as the Navy integrates 3D-printed metal parts into submarine programs, citing AML3D’s unique capabilities to deliver fast, certifiable components.

Shaw maintains a Buy, High Risk rating and a 40c target price. 

Citi rates ALX as Buy

Citi analysts expect the cyclical recovery in Australia to remain intact despite 10% reciprocal tariffs by the US but see a more dovish RBA in the near term. The analysts have maintained their -25bps rate cut forecasts for May and August.

The broker sees infrastructure names benefitting from lower finance costs and safe haven demand from increased volatility.

The broker will watch the exchange rate space, as currency depreciation could be a negative for offshore earners like Atlas Arteria.

Buy. Target $5.70.

Citi rates BRG as Neutral

Citi believes earnings risk for Breville Group is rising for FY26 due to tariffs on countries it was increasingly sourcing from, apart from likely reducing spending capacity from US consumers.

The impact will be felt by Breville Group's competitors too, the broker notes, but its focus on mid-to-higher end makes it more vulnerable as consumers will likely move to cheaper brands in an inflationary environment.

Neutral. Target $38.2.