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

UBS rates NWH as Buy

NRW Holdings announced "another" contract, UBS explains, for $200m work packages for the Tonkin Highway Grade Separations, Hale Rd and Welshpool Rd East project by Main Roads in WA.

Construction is expected to start in 4Q26 with a flagged timeline of around 18 months.

The analyst views the update as further evidence of the contractor continuing to renew its order book, which underwrites forward revenue visibility.

The broker estimates order book balance remains strong at around $6.8bn-$6.9bn after accounting for expected 2H26 revenue and the latest contract award, providing more than 1.5 years of revenue coverage based on FY27 forecasts.

The estimates excludes numerous smaller work packages below the company's disclosure threshold, suggesting the order book could remain near current levels by the end of FY26.

With strong market activity, a robust tender pipeline and available operating capacity, UBS anticipates multi-year revenue visibility to remain a key investment theme for the company. Buy. Target unchanged at $7.

Citi rates ORI as Buy

On further inspection post the initial update below, Citi believes the ongoing restructuring and earnings quality/cash is more likely to improve in FY27.

Orica remains Buy rated with a higher target of $25.40 from $25.05.

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In a quick update, Citi notes Orica announced 1H26 earnings of $512m which came in some circa 3% above consensus and up 5% y/y.

On a qualitative basis, the analyst considers the result as better than the March update, thereby implying a "solid" year end exit rate.

Breaking down the divisional performance, blasting was around 2% better with improvement coming from value added from premium products offsetting lower coal production from Indonesia.

Digital solutions was also a slight beat by around 3% with robust adoption underpinning growth. Specialty minerals was a circa 5% beat.

Citi highlights "significant" below the line items. Buy rated with a $25.05 target.

Morgans rates S32 as Accumulate

Morgans assesses underlying mine performance held up well across diversified miners during the cyclone and weather disrupted March quarter yet cost pressures are starting to have an impact after the outbreak of conflict in the Middle East, affecting diesel, caustic and freight.

South32 remains the broker's preferred diversified miner at current prices, citing Sierra Gorda copper distributions, Taylor mine life extensions, and aluminium prices at four-year highs.

Accumulate retained. Target edges down to $5.00 from $5.10.