Australian Broker Call

Ord Minnett rates BET as Upgrade to Buy from Speculative Buy (1) -

Ord Minnett believes Betmakers Technology has turned the corner, supported by a $13.5m capital raise which strengthens the balance sheet and funds the proposed acquisition of Las Vegas Dissemination Company (LVDC).

The broker suggests April earnings (EBITDA) of $0.9m demonstrate momentum, with the placement resolving prior investor concerns and positioning the business for sustained growth.

The company is expected to generate $1.3m in free cash flow (FCF) in FY26, rising to $6.3m in FY27, with the broker's cash forecast to bottom at around $16m in 1Q26 before recovering.

Ord Minnett raises its target price to 23c from 21c. Upgrade to Buy from Speculative Buy.

Target price is $0.23 Current Price is $0.11 Difference: $0.125
If BET meets the Ord Minnett target it will return approximately 119% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates CCL as Buy (1) -

Recent payments data are in line with Bell Potter's forecast, lifting its confidence Cuscal will achieve its estimate of an 8% run rate for transaction volumes going into FY26. 

The broker is also optimistic about the opportunity to increase volumes from recent mergers where the acquirers are contracted to the company. Mergers quoted were MyState ((MYS))/Auswide, Regional/Summerland and BankAustralia/Qudos.

Additionally, the analyst thinks a transaction between the company and Indue is a possibility.

Buy. Target rises to $3.50 from $3.40, as the broker removed downside risk in the valuation after Tyro Payments ((TYR)) dropped out of the Smartpay Holdings ((SMP)) acquisition process.

Target price is $3.50 Current Price is $2.97 Difference: $0.53
If CCL meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates COS as Buy (1) -

Cosol's guidance for FY25 fell short of Bell Potter's forecast across all metrics, and for FY26 revenue missed the broker's estimate.

The company cited challenges with new contracts, one-off restructuring costs and lower activity in the coal sector as reasons for the FY25 downgrade, including statutory EBITDA.

The broker cut FY25/26/27 revenue forecasts by -2%, -10% and -11%, respectively, with the FY25 revenue forecast of $120m now within the company's $118-121m guidance range. 

Buy. Target cut to $0.90 from $1.15, as the broker reduced valuation multiples.The stock is considered to be cheap on a PE of 11x.

Target price is $0.90 Current Price is $0.66 Difference: $0.245
If COS meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates COS as Buy (1) -

Cosol’s FY25 trading update fell short of Ord Minnett's expectations, with revenue and earnings (EBITDA) guidance at $119.5m and $16.5m, both below the broker’s and consensus forecasts.

The broker attributes the miss to delayed contract commencements into FY26, weaker coal sector activity, and one-off restructuring costs.

Despite the near-term disappointment, management expects 10% organic growth in FY25 and strong double-digit growth in FY26 earnings (EBITDA) and EPS. This view is based on higher-value digital transformation and analytics contracts.

Certainly, Ord Minnett believes momentum into FY26 is building, with growing managed services penetration and margin upside if client transitions succeed.

The broker lowers its target price to $1.12 from $1.24 and retains a Buy rating.

Target price is $1.12 Current Price is $0.66 Difference: $0.465
If COS meets the Ord Minnett target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates ELD as Buy (1) -

Morgans interprets the latest data on commodities and crop production from Abares as positive for Elders.

Abares' 2025/26 forecast shows a decline in the value of Australian agricultural production of -2.8% against the previous year, but it still marks the third highest result on record and comes off a high base in 2024/25 which lifted 12.7%, the broker details.

Abares' forecasts at the start of the season are usually conservative the analyst stresses.

Regarding the Delta Agribusiness acquisition, the ACCC has raised concerns regarding six stores and has some concern over thirteen further stores.

If the takeover fails to go through, Morgans proposes Elders might return some of the funds raised to shareholders through a buyback.

The analyst lowers FY25 earnings before interest and tax forecast by -6.6% for backing out a contribution from Delta in 4Q25.

Target slips to $8.45 from $8.55. No change to Buy rating.

Target price is $8.45 Current Price is $6.09 Difference: $2.36
If ELD meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $8.79, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates IPX as Speculative Buy (1) -

Iperionx has secured a US Department of Defense contract worth up to US$99m under the Small Business Innovation Research (SBIR) Phase III program, enabling ongoing orders across multiple agencies, highlights Bell Potter.

The SBIR program focuses on the commercialisation of technologies, products, or services developed during earlier SBIR phases.

Initial production is set to begin within months and will feature titanium fasteners, explains the broker, with scope to expand into higher-value components.

This is the company's largest commercial agreement to date, exceeding the US$11m Ford contract signed in September 2024. The analysts view the contract win as strong validation of the company’s titanium recycling technologies.

Manufacturing will scale at the Virginia facility through 2025, notes the broker, supporting Iperionx's engagement with aerospace, automotive, and defence end markets.

Bell Potter raises the target price to $6.25 from $5.90 and retains a Speculative Buy rating.

Target price is $6.25 Current Price is $4.78 Difference: $1.47
If IPX meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates MP1 as Downgrade to Sell from Hold (5) -

Ord Minnett reviews Megaport’s go-to-market strategy and expects revenue growth to continue, but sees key metrics such as net revenue retention (NRR) and annual recurring revenue (ARR) requiring further investment.

Any material acceleration in revenue growth will likely be deferred to FY27 from FY26, suggests the analyst.

FY26 revenue guidance of 14% revenue growth matches FY25 and the broker’s estimate, underpinned by new products, reduced churn from longer-term contracts, and salesforce expansion.

Ord Minnett estimates each 1 percentage point gain in retention adds around $2m to revenue and anticipates stronger returns post FY26 from deeper product and data centre penetration.

Despite these drivers, the broker believes the upside is already priced in following a 60% share price rally over two months.

Ord Minnett retains its $11.50 target price and downgrades to Sell from Hold.

Target price is $11.50 Current Price is $13.90 Difference: minus $2.4 (current price is over target).
If MP1 meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.05, suggesting downside of -12.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates NWS as Overweight (1) -

Recent sale of UK newspaper Telegraph Media Group prompted Morgan Stanley to assess whether the market is undervaluing News Corp's UK and Australian newspaper assets.

The broker notes UK and Australian newspapers generate 25% of the total revenue forecast for FY25, but account for only 2-3% of the valuation. If the Telegraph sale multple were applied, the upside potential for its target price would be 3-14%.

The broker didn't revise forecasts or valuation, but this assessment has increased its convinction about the overall investment thesis for the company.

Overweight. Target unchanged at US$37.

Current Price is $49.71. Target price not assessed.

Current consensus price target is $65.50, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates SOM as No Rating (-1) -

SomnoMed specialises in the development and manufacture of oral appliance therapy (OAT) devices for treating obstructive sleep apnoea (OSA). Founded in 2004, the company has grown to become the leading global OEM in the dental sleep medicine sector.

In Morgans 'Keeping Stock' coverage, (no rating or target), the broker highlights a swing to profitability over the last 18 months through improved sales and manufacturing capacity increases. Management also implemented a cost-base restructure and repaid debt facilities.

The analysts point to a 19% year-on-year rise in first-half revenue to $53.7m, supported by improved throughput, restructuring benefits, and regional sales growth.

Earnings (EBITDA) turned around to $5.8m, while free cash flow recovered to $1.3m from a -$8.0m outflow, and cash increased to $18.5m from $16.2m, notes the broker.

Manufacturing capacity has expanded over 40%, with turnaround time reduced to under 10 days, positioning the company well for further growth, in Morgans' view.

Current Price is $0.62. Target price not assessed.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates WHC as Overweight (1) -

Following visits to Whitehaven Coal's Daunia and Blackwater sites, Morgan Stanley noted progress in operational improvements and cost management will continue to benefit production and cost base.

The company remains on target for $100m annualised cost savings run-rate across Queensland assets by the end of FY25, and sees more opportunities at Blackwater.

Improvement in coal prices is being awaited to invest -$1bn for Vickery expansion, with the project ready to seek board approval if the decision is made to proceed. 

Overweight. Target unchanged at $6.20.

Target price is $6.20 Current Price is $5.59 Difference: $0.61
If WHC meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.66, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources