Research notes

Boeing is a leading global aerospace and defence manufacturer, founded in 1916 and headquartered in Arlington, United States. The company designs and produces commercial airplanes, military aircraft, satellites, and space systems for customers in more than 150 countries. With a commercial airline market share of approximately 43%, Boeing remains a central player in global aviation. The company enters 2026 focused on production ramp-up, certification milestones for the 737 MAX 7, MAX 10 and 777-9, and a strategic recovery path under CEO Kelly Ortberg. Its extensive order backlog and diversified defence programs continue to underpin long-term growth opportunities.

SUN has provided an update on its aggregate reinsurance cover and its FY26 outlook. Overall, in our view, SUN securing an aggregate reinsurance cover will reduce future earnings volatility, whilst 2H26 claims are tracking below our expectations. We raise our SUN FY26F/FY27F EPS estimates by +3% and +1% respectively, reflecting lower-than-expected current year hazard claims relative to our prior forecasts, a mark-to-market and a modest adjustment to our forward UITR assumptions. Our price target increases to A$17.79 (previously A$17), driven by these earnings revisions. We believe SUN's management has executed well in recent years, successfully steering the company's strategy as a pure play general insurer. However, with the upside to our price target now more limited, we move to a HOLD recommendation.

A soft opening to FY26 saw two of three headline metrics narrowly miss consensus, though without material impact. FY26 production guidance is unchanged and the year remains back-end weighted. FOB cash cost guidance increased to US$98-103/t from US$93-97/t due to inflationary pressures on fuel costs. Our forecast FOB costs have been increased to ~US$99/t to reflect this guidance update. We have made material changes to forecasts that reduces our DCF valuation to A$2.80ps (previously A$2.95ps). Following recent share price weakness, we upgrade our recommendation to BUY (previously HOLD).

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries and streams in over 30 languages. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

WHC delivered a strong beat against consensus in 3Q with exceptional results for Saleable Coal Production (+9%) and Sales of Produced Coal (+13). FY26 guidance remains intact with high confidence in landing in the upper half of guidance, supported by strong sales and operational momentum coming into 4Q. Refinancing complete – A$50-55m annual interest savings locked in. We maintain an ACCUMULATE rating on WHC with a price target of $9.20ps.

6KA delivered a strong March quarter update, with revenue up 88% to US$6.2m. This implies an annualised run-rate of ~US$25m, up from ~US$22m in 4Q25, driven by solid demand from both new and existing customers. The run-rate is also ahead of our CY26 revenue forecast of US$22.8m, with the company capturing market share and improving operational metrics. Both the Powder (+100%) and Alloy (+70%) products divisions delivered strong revenue growth on the pcp, with a higher order backlog supporting sales momentum over coming months. We make no changes to earnings forecasts. In our view, 6KA remains well positioned to benefit from strong demand in metal additive manufacturing and US initiatives to reshore critical minerals, supported by its fully domestic powder production which reduces reliance on foreign-controlled feedstock. SPECULATIVE BUY rating and $1.30 target price maintained.

IFM Global Infrastructure Fund has launched an off-market takeover bid for the c.65.5% of ALX shares that it does not already own. A key condition precedent for the takeover bid to proceed is OTPP waiving its option to sell ALX its stake in the Chicago Skyway. Given IFM’s existing large (and growing) stake in ALX and the OTPP poison pill we believe it unlikely that a counter-bidder will emerge. Hence, our assessment is that risk at current prices is skewed to the downside ($4.22/share) rather than upside ($5.10/share). TRIM into current share price strength.

RWC has reaffirmed all earnings guidance, including regional and group outlooks, for 2H26 and FY26. Against an uncertain global macro backdrop and the potential impact of higher oil prices stemming from the Middle East conflict, the trading update was better than feared. In relation to the expected impact from US tariffs, while there have been several changes since the 1H26 result in February, the anticipated impact on RWC’s earnings in FY26 and FY27 remains unchanged. We make no changes to FY26 earnings forecasts but reduce FY27 and FY28 underlying EBITDA by 2%, reflecting a more modest earnings growth profile amid ongoing subdued housing conditions. Despite the adjustments to earnings forecasts, our target price increases to $3.25 (from $3.00), reflecting an uplift in our PE valuation multiple to 12x (from 11x) following the better-than-feared trading update. HOLD rating maintained.

IMR posted its 1Q26 cash flow report. While sales remain modest the underlying cash burn was higher than the previous quarter and expected to normalise around US$6m. During the quarter one-off costs related to the purchase of 40 generators which were part of an in-house transitioning process. Cash at the end of the quarter was US$32.9m, representing 5.5 quarters of underlying cash burn. We have made no changes to forecasts. However, a higher risk-free rate (house view), sees our DCF valuation reduce to A$2.63 (was $2.71). We maintain our SPECULATIVE BUY recommendation with numerous catalysts approaching.

Johnson & Johnson is an American multinational pharmaceutical and medical technologies company head quartered in New Jersey. The company manufactures health care products and provides related services for the pharmaceutical and medical devices markets. It develops and sells prescription pharmaceuticals and medical technology worldwide.