Research notes

REA’s 1Q27 result was driven by strong controllable Buy yield growth (+14%) and tight cost control (Australian costs +3%), which helped offset a relatively large geomix drag and a ~2% decline in new listings. FY27 guidance was unchanged. >We make no changes to our forecasts in this note. Our DCF-derived price target remains A$203. Strong recent share price appreciation has now resulted in ~15% TSR upside to our valuation and so we move to an ACCUMULATE (from BUY) recommendation per house structure.

Yesterday the media reported that Digital Realty (DLR.NYS) in conjunction with Goodman Group (GMG:ASX) were seeking 9.9% of NXT at A$9.50 per share. >Today NXT have responded in an ASX release stating that NXT “does not know the outcome of the share raid” and the board is "not in possession of any takeover proposal at this time". >We think this is a move that puts NXT in play. We move from a BUY to an ACCUMULATE recommendation and lift our target price to $11.50 p/s.

APE has delivered a softer trading update, with underlying PBT guidance ~15% below prior consensus at the mid-point and the implied 2H26 >25% below. >The weaker update was driven by cyclical economic pressures, compounded by structural industry challenges, namely elevated supply, brand proliferation and share loss for legacy ICE OEMs. >Positively, APE continues to meaningfully outperform the broader industry, and CanadaOne is tracking ahead of expectations. We expect earnings to recover through FY27 as economic headwinds ease, with APE’s scale and Toyota/BYD weighting leaving it well placed to navigate the structural industry shift.

While AMC’s Sep-26 quarter result was in line with expectations, guidance for the Dec-26 transition period was downgraded by ~5% at the midpoint due to a timing lag in recovering higher energy and distribution costs. >Volume growth was a key highlight with group volumes rising ~1%. Growth was driven by a ~1.5% increase in core volumes, partly offset by a low- to mid-single-digit decline in non-core volumes. >AMC remains on track to achieve its 3-year Berry synergies target of US$650m, with over half (US$345m) delivered over the past 15 months. >We decrease CY27-29F underlying EPS by 3%. Our underlying EPS forecast for the Dec-26 transition period declines to US$1.75 from US$1.85 previously. >Our target price falls to $62.50 (from $65.30) and we maintain our HOLD rating.

COG’s 1Q27 update delivered a strong performance, in our view. EBITDA to shareholders rose 53% on the pcp to A$15.3m, with the annualised run-rate (~A$61m) implying ~19% growth, well above FY27 guidance of 10%+. >We lift our FY27F/FY28F EPS forecasts by 13–15% on higher growth expectations for the Salary Packaging business. We now forecast FY27 EBITDA to shareholders growth of ~15%, above guidance of 10%+. Our target price is set at A$2.19 (previously A$2.00). >We see COG as undervalued, trading at ~10x FY27F EPS, given the long-term growth potential and optionality in the business. We retain a BUY recommendation.

The 1Q27 financial result reflected the previously reported operational softness at Langer Heinrich Mine (LHM). Production of 1.0Mlb U3O8 fell short of consensus expectations, impacted by the planned July plant shutdown and weaker recoveries associated with ore characteristics, while sales volumes of 1.16Mlb were broadly in line with consensus estimates. The lower production profile and continued cost pressures weighed on cash generation during the quarter, resulting in cash outflow. >Realised pricing during 1Q27 was a record for LHM at US$79.4/lb and we expect should continue to improve in time as legacy contracts roll off. >We maintain our BUY rating with an unchanged target price of A$13.10ps.

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.

GMG's 1Q27 operating update (reported 4 November) was steady. FY27 targets of 9% OEPS growth and a 30.0cps distribution were reaffirmed, remaining below MorgansF (+10.2%) and VA Consensus (+10.5%), reflecting that GMG has beaten its initial target every year since FY18. WIP held at $19.7bn (79% data centres) at an 8.3% yield on cost and the power bank grew to 6.6GW. There were no new data centre leases, and management was clear it will not sign until delivery is locked in. >Our forecasts and $33.20/sh target price are unchanged. We see the lack of new leases as a timing issue, with three projects in advanced negotiations and market rents rising. With the stock down 13% over three months and trading on c.18x forward earnings (long-run average c.24x), we upgrade to BUY.

NAN’s AGM reaffirmed FY27 guidance, with 1Q27 trading in line. It also appointed former Olympus Americas CEO Julien Sauvagnargues to the board. >The hire is the most interesting item for us, adding endoscopy customer insight just as CORIS moves into launch. Beyond that, there was little news on CORIS traction, and the second US 510(k) approval and timing remains the key overhang. >No change to our ACCUMULATE rating or A$3.50 target price. With the stock at A$2.92 (down 34% over 12 months), the focus stays squarely on early CORIS execution. Buyers on weakness.

WRK has released its 1Q27 activity report. >Operating metrics stepped up sharply in 1Q27, reflecting the Payday Super regulations going live on 1 July 2026. Activation (the lead indicator for revenue) nearly doubled to 50.7%, and ARR rose 27% QoQ to A$17.0m. >Cash receipts were soft at A$3.4m, largely on timing, and the net operating outflow was A$4.1m versus an inflow of A$616k in the pcp. Management expects outflows to moderate from 1Q27 levels and says WRK is fully funded to cash flow break-even. We continue to see 3Q27-4Q27 as the turning point for WRK. >We lower our FY27F/FY28F EPS by 1%-6% on slightly higher operating expense assumptions. Our target price falls to A$0.11 (from A$0.12). >Maintain BUY with >20% upside to our target price.