Weekly Reports | Oct 17 2025
In Brief has three analyst favourites this week across a cross section of sectors and themes.
-US competitor supports outlook optimism for Dicker Data
-A favourable and earnings accretive acquisition for SRG Global
-Too many concerns holding back ResMed shares, says Canaccord
By Danielle Ecuyer
This week’s quote comes from Nilesh Jasani from Geninnov
“There is a certain rhythm to progress, a pattern often best captured not in dense treatises but in simple, slightly odd sayings.
"They are the sort of thing one might overhear in a quiet London pub, where understatement is the highest form of wit; or perhaps, the sort of profound thought that only strikes after consuming one’s body weight in Diwali sweets, forcing the mind to find a new use for all that energy.
"We want innovations to be a grand, singular symphony. The reality, as one discovers, is a cacophony of like four different string quartets playing four different tunes in four different rooms, all at once.”
Peer review promising for Dicker Data
Synnex Corporation, a US information and communications technology distributor which offers hardware, software, cloud services and the like, reported a record 3Q2025 result which included a relatively robust contribution from its Asia-Pacific and Japanese businesses.
Synnex also highlighted a rise in spending from its small-medium business (SMB) and its managed service provider operation (MSP). Petra Capital explains it is not clear whether this applies to A&NZ or to what extent.
While software and PCs, the latter due to a refresh rather than AI upgrade, were the main sectoral drivers of sales growth, SMB and MSP contributed with enterprise noted as “stable”. No regional comments across the segments were offered.
The latest outlook offered by ASX-listed Dicker Data ((DDR)) provided 2025 revenue growth of 10%-13% which, the analyst explains, is above system growth of 8.7%. Petra forecasts Dicker Data to announce gross revenue growth of 8.7% in 2H2025, bringing 2025 growth to 11.9% on the prior year.
Dicker Data’s outlook update aligns with Synnex’s commentary and results. Petra is “upbeat” about the company’s growth potential, boosted by its robust competitive position in A&NZ and good exposure to any recovery in IT spending for the SMB sector.
The stock is Buy rated with a $11.85 target price.
FNArena's daily monitored brokers have a consensus target price of $9.983 with latest updates at the August earnings report. Two Buy-equivalent ratings combine with one Hold.
Moelis upbeat on SRG Global
Moelis is the latest broker to join the positive chorus around SRG Global’s recent acquisition, Total Tams Pty Ltd, for -$85m in consideration.
Tams is an end-to-end diversified marine infrastructure services partner with over twenty-five years of history behind it. The company is detailed as having expertise in design, engineering, construction, maintenance, and remediation services.
The geographic exposure is described as “strategic,” including Pilbara, Fremantle, and Gladstone, and encompasses sectoral exposure to the resources, energy, transport, water and defence sectors. This includes 500-plus employees, viewed as “skilled technical specialists,” and a well-regarded management team.
The acquisition price infers a prospective FY26 earnings (EBIT) multiple of 3.2 times, and SRG anticipates it will be around 25% accretive to FY26 EPS pre-synergies.
Funding is split between $57.3m of on-balance-sheet cash and available debt facilities, while 13.9m shares or $27.7m of SGR shares will be issued to the vendors with a two-year earn-out opportunity.
The earn-out is set at 100% of Tams’ annual earnings (EBITDA) above $30m and up to $40m, and 50% of Tams’ annual earnings (EBITDA) above $40m in each of the following two years.
SRG’s pro forma gearing is estimated at only 0.3 times in FY26.
The analyst commends the strategic rationale of the acquisition with two very aligned and complementary businesses that have the potential for cross-selling opportunities across both new and existing customers.
Moelis raised its EPS forecasts by 21% for FY26, 30% for FY27, and 32% for FY28. A Buy rating is maintained. Target price rises to $2.81 from $2.
Daily monitored brokers have been no less enthusiastic about the acquisition, with four equivalent Buy ratings including one upgrade from Accumulate, with a consensus target price of $2.975.
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