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

Morgans rates AIH as Buy

Morgans believes Advanced Innergy's acquisition of Matrix Composites & Engineering is strategically sound, creating a stronger competitor to market leader Balmoral in the subsea buoyancy market.

Matrix is the world's largest manufacturer of syntactic foam, which is critical for buoyancy in subsea applications.

While the transaction is strategically sound, the broker considers the -$90m purchase price above fair value. Matrix is expected to contribute only breakeven earnings (EBITDA) initially as it works through lower-margin contracts.

Morgans cuts its FY26 and FY27 profit forecasts by -3% and -12%, respectively, reflecting higher depreciation and interest costs, though FY28 forecasts rise around 15% as synergies and margin improvements emerge.

The target falls to $1.25 from $1.45, whilst the Buy rating is retained.

Bell Potter rates IRI as Buy

Integrated Research delivered an update that was below Bell Potter's expectations. Pro forma revenue guidance of $64m-$66m was down -13% at the mid-point and showed new business growth well below the revenue churn.

Guidance for FY26 EBITDA is $2m-$4m.

The main positive the broker took from the update was the cash balance at the end of year. At $51.7m it was well above forecasts.

Bell Potter still expects "modestly positive" EBITDA in FY27. Buy rating maintained. Target is raised to $0.38 from $0.36.

Citi rates RRL as Neutral

Regis Resources announced higher than expected AISC of $3,244, some 7% above Citi's forecast and 9% above consensus, but it included a non-cash stockpile drawdown of $181.2/oz, the analyst highlights.

The June quarter achieved the highest grades for the year. Duketon grade was 11% higher than the previous average over 12 months, and Tropicana 19% above.

Pre-released production was boosted by the better grades to 101.5koz. The broker flags an expected decline in the run rate over the extended period year which more closely aligns with FY27 production guidance of 360koz-400koz.

For Regis Resources: target $8.10; Neutral rating.