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

Shaw and Partners rates IOD as Initiation of coverage with Buy

Shaw and Partners initiates coverage of IODM with a Buy rating, High risk and 23c target price. The company is a leading provider of accounts receivable automation software.

IODM works with FX payment partners and shares FX revenue from international students paying tuition and accommodation fees to universities. The company has 20 universities in the UK and is expanding into the US, Canada, Japan, Mexico and South America.

The analyst forecasts CAGR revenue growth of 47%-plus through FY25-FY28, with cost CAGR growth of 8%, and expects the company to be free cash flow positive in FY27 and cash earnings (EBITDA) positive by FY28 onwards.

Bell Potter rates JIN as Hold

Jumbo Interactive published a preliminary 1H26 update, which pointed to a strong 1H26, with underlying EBITDA of $37.5m, up 22.6% y/y, beating consensus, Bell Potter highlights.

The outcome was driven by acquisitions, resilient Australian performance, SaaS growth, Managed Services recovery, and strength in Dream Car Giveaways UK.

Growth in SaaS, Managed Services and proprietary/charity products lifted non-Lottery Corp ((TLC)) revenue to 39%. However, weaker-than-expected Lotteries TTV points to potential market share or digital penetration pressures, the broker cautions.

FY26 EPS forecast downgraded by -4% but FY26 lifted by 4%, reflecting softer jackpots and higher costs. Target cut to $10.80 from $12.80 on a higher asset beta amid rising AI-related risks for software businesses.

Hold remains.

Citi rates LLC as Buy

Citi notes Lendlease Group made late-year progress on key priorities through asset sales and development wins, but there are delays, particularly in the sale of the Australian retirement business.

The broker is encouraged by the late-year progress, but the pushback in buybacks and higher costs resulted in a downgrade of FY26 earnings forecasts. The broker highlights that the pressures are reflected in recent share price weakness, and it was always known FY26 would be challenging for Lendlease.

Buy retained, with a lower target of $6.30 from $6.70. FY26 EPS forecast cut by -28% but expectation remains for earnings recovery in FY27 on One Circular Quay project.