Research notes

SHAPE delivered a solid trading update continuing the strong earnings momentum this business has delivered over the past few years. We make upgrades to our forecasts, with FY27 NPAT up 4.8% and outer years up ~2%. We retain our BUY rating and increase our price target to $9.06 (was $8.76).

BETR Entertainment delivered a mixed 1Q27 result. Solid turnover growth was offset by customer-friendly sporting and racing outcomes, which weighed on margins. Turnover of $432.3m was up 19.1% on pcp, supported by the World Cup and continued share gains. Gross win rose 3.2% to $53.5m and net win rose 1.0% to $38.4m. Management estimate results cost around 1.8pp of gross win margin, and net win margin fell to 8.9% (pcp 10.5%). Encouragingly, October trading to date has rebounded sharply, with net win up 73% at an 11.5% net win margin. More than half of the Q1 results-related cash impact has already reversed. Looking ahead, management reaffirmed FY27 guidance of $13-19m normalised EBITDA (MorgansF: $14m) and positive operating cash flow, weighted to the second half. >We lower our FY27 EBITDA forecast to $14.0m (previously $15.4m). We maintain our Buy recommendation, with a revised $0.34 target price.

DTL has upgraded PBT guidance twice in the month of October with 1H27 PBT guidance lifted from in excess of >$47m in early October to $52-57m now. >Customer demand is strong, distributor peers continue to upgrade and DTL is executing well. However, a portion of DTL’s upgrade today was from improved visibility on delivery dates. With firm end customer delivery dates now set, DTL has a better feel and now expects its earnings to land in 1H27. >We upgrade our forecasts meaningfully and lift our target price to $15.00.

GDF is selling its industrial real estate portfolio, with the transaction close to book value at a time when GDF is trading at a 38% discount to NTA ($1.65/sh pre-transaction). The trade-off is earnings quality. Income moves from low yielding leased industrial property to high returning loans with high borrower concentration and exposure to early-stage and construction lending. To this end, we would draw a comparison with QRI and MXT, which trade at a P/NTA discount of 10% and 14%. >Trading at a significant discount to NTA (half of which is cash backed), and on a distribution yield (excl special distributions) of c.11%, GDF represents value. However, investors will be subject to a 41.7cps gross capital gain (20.8cps after AMIT 50% discount attribution to individuals). The residual business relatively concentrated across cash plus 16 commercial real estate loans to eight borrowers. We rate GDF an ACCUMULATE, with a $1.25/sh price target.

WOW delivered a solid 1Q27 sales trading update. >The performance of the Australian Food division was a key highlight with solid momentum continuing in Australian B2B. >Sales growth in NZ Food moderated toward the end of the quarter due to increased competition and softer consumer sentiment, while BIG W was impacted by weaker discretionary retail conditions. >We adjust FY27/FY28/FY29F group underlying EBIT by +1%/+1%/+1%. Our target price rises modestly to $43.55 (from $43.50). >In our view, while trading conditions remain challenging in NZ Food and BIG W, the core Australian Food business (~88% of group EBIT) continues to perform well, supported by improved execution and sustained sales growth ahead of the market. While we expect this momentum to continue, WOW is now trading on 28x FY27F PE with a yield of 2.7%. As a result, we see limited upside from current levels, with the valuation largely reflecting the growth outlook. We downgrade our rating to HOLD from ACCUMULATE.

Airtasker’s (ART) 1Q27 trading update was solid, driven largely by Australian GMV growth of ~21% on the pcp to A$57.3m. Group revenue of A$14m rose ~16% ex-Oneflare (+1.4% including Oneflare, retired in 4Q26), paid memberships passed 25k (was 10k at Jun-26) and FY27 guidance was reaffirmed. >We make no changes to our forecasts. Our price target is unchanged at A$0.47 and we retain our BUY recommendation.

RMS has released its 1Q27 quarterly report: 48.8koz at an AISC of A$2,656/oz, with cash and gold up A$118m QoQ to A$768m and underlying FCF of A$62m. >Production was impacted by wet weather interrupting haulage from Penny, deferring higher-grade ore into 2Q27. Never Never grade was lower but in line with RMS's mine sequencing, with tonnes and grade the key watch point as the year progresses. FY27 guidance was reaffirmed. >We maintain our BUY rating with a price target of A$5.18ps (previously A$5.02ps).

1Q27 production and costs beat expectations, but a 15kt shipment delayed into October and weaker pricing led to a -12%/-6% revenue miss vs MorgansF/consensus. >FY27 production and cost guidance are unchanged, while capex guidance has been revised to A$1,130-1,195m to include P2000, enhancing infrastructure and the newly announced Fortescue PPA, which is expected to lower P2000 unit costs by a further ~A$15-20/t. >Maintain ACCUMULATE with A$3.60ps target price (previously A$3.70ps).

Freeport-McMoRan (FCX) is an American based miner that is heavily focused on copper mining and produces gold and molybdenum as by-products to its copper production. FCX owns significant interests in three out of seven of the largest copper mines in the world by-production, the Grasberg Minerals district in Indonesia, the Morenci mine in Arizona, and the Cerro Verde mine in Peru. Indonesia is the largest source of FCX’s revenue. The Grasberg district in Indonesia is the second largest copper mine in the world and the largest gold mine, despite gold being produced as a by-product. Additionally, it is one of the lowest cost mines in the world due to the high grades of copper and gold produced. FCX operates seven open pit copper mines in North America and two copper mines in South America.

LVMH Moët Hennessy Louis Vuitton SE is a multinational luxury group conglomerate based in Paris, France. It operates five business segments: Wines and Spirits; Fashion and Leather Goods; Perfume and Cosmetics; Watches & Jewelry; and Selective Retailing. Its 75 brands include Dom Pérignon, Moët & Chandon, Veuve Clicquot, Hennessy, Louis Vuitton, Christian Dior, Givenchy, Acqua di Parma, Tiffany & Co, TAG Heuer, Bulgari, DFS, and Sephora. LVMH operates around 6,300 stores worldwide. LVMH was formed by Bernard Arnault, Alain Chevalier and Henry Racamier in 1987 from the merger of Louis Vuitton and Moët Hennessy. Louis Vuitton itself was founded as a manufacturer of luggage in 1854. Moët Hennessy was formed in 1971 through the merger of the champagne house Moët & Chandon (founded 1743) and the cognac producer Hennessy (founded 1765). Some of LVMH’s more recent major acquisitions include Tiffany & Co. in 2020, Rimowa in 2016 and Loro Piana in 2013.