Research notes

FY26 confirms PME is executing at an even higher level than the market gave it credit for. EBIT margin of 74.9% and constant currency EBIT growth of 30.6% both beat expectations comfortably, with the FX-driven softness in headline revenue a currency story, not a demand or execution one. Momentum remains broad-based, implementations are ahead of schedule, renewals are a clean sweep, and the pipeline is opening up in new segments rather than just deepening in existing ones. Looking ahead, FY27 is shaping as a genuine standout year. With four Trinity cohorts and 15 other implementations already banked rather than still ramping, the P&L gets the full run-rate benefit without needing fresh signings just to stand still. Nothing in the result gives us any pause for change versus our positive view. Retain ACCUMULATE call, with our A$230 target price unchanged.

Tencent Holdings Ltd is a Chinese multinational technology conglomerate and holding company headquartered in Shenzhen. Its services include social network, music, web portals, e-commerce, mobile games, internet services, payment systems, smartphones and multiplayer online games. The company is split into six groups: Corporate Development Group, Cloud & Smart Industries Group, Interactive Entertainment Group, Platform & Content Group, Technology Engineering Group and Weixin Group.

CoreWeave is a US-based AI cloud provider or Neo Cloud Provider (NCP). It specialises in NVIDIA GPU clusters for training and inference workloads. Listed on Nasdaq in March 2025 with a market cap of approximately US$49bn, CoreWeave operates 43 data centres with 850 megawatts of active power and contracted access to 3.1 gigawatts of total power capacity.

Solid 2H26 growth was as expected, but the mid-point of FY27 EBITDA and DPS guidance ranges was c.3% and c.5% below consensus expectations, respectively. Material EPS/DPS forecast downgrade for FY27F, mild upgrades FY28-29F. DCF-based target price set at $3.56/sh. Moderate from TRIM to HOLD given today’s material share price decline improves potential TSR to c.2%.

Quality contractor with a “Made Personal” approach. FDC combines a 36-year track record, disciplined project selection and a relationship-led model that drives repeat and non-tendered work, supporting project wins and margin outcomes. Attractive earnings growth, visibility and cash generation. We forecast ~12% revenue and NPAT CAGR from FY25-FY28, and note ~71% of FY27 revenue is already secured. A capital-light model, strong net cash position and free cash flow support a 70-90% dividend payout ratio. Valuation. We initiate coverage with an ACCUMULATE recommendation supported by a $3.97 target price and a >5% dividend yield forecast.

A2M’s FY26 result was broadly in line with recent guidance. China label IF was the key area of weakness, however the rest of the portfolio delivered solid growth. FY27 outlook comments were materially weaker than expected; however, we view them as conservative and would not be surprised if guidance is upgraded at the AGM. While the 1H27 result will be weak, double-digit earnings growth will resume in 2H27 and out to FY30, underpinned by new products, supply chain transformation, and the scaling of new and other geographies. We maintain our ACCUMULATE rating with a revised PT of A$7.62 (was A$8.30).

The Bowdens DFS confirms a materially larger and longer-life project, with reserves up 30% to 93.5Moz at 60.8g/t Ag, and total operational life extended to 26 years (previously 16 years). Project economics have improved materially, with DFS Stage 1 pre-tax NPV5 up 144% and IRR lifting to 31.5% (base case US$45/oz Ag, AUD/USD 0.70), despite notably higher upfront capital requirements. We maintain our SPECULATIVE BUY rating and lift our price target to A$0.43 per share (previously A$0.40 per share).

IMD delivered a robust FY26 result, with EBITDA +29% and NPATA +34%. All earnings metrics were broadly in line with our forecasts. The disappointment was below the operating lines. FY26 integration costs of $9m will continue into FY27, while new guidance below EBITDA implies a $12-13m impost to pre-result consensus NPBT(A). We leave our FY27 EBITDA forecast unchanged at $200m and continue to think the market underappreciates operating leverage in the core business. But with EPS(A) growth moderating from +34% in FY26 to +16% in FY27F, and FY26 net debt growing to $200m, a 30x forward PE multiple is difficult to justify. We reduce our valuation to ~28x FY27 EPS(A), which sees our target price fall to $4.30 (previously $5.00). We move to ACCUMULATE (from BUY).

IRE’s 1H26 result was softer than anticipated, with slower revenue momentum along with currency headwinds the main drivers. While Group revenue & underlying EBITDA fell short of MorgF by -2%/-4% respectively, earnings quality continued to improve as efficiency program cost improvements saw underlying EBITDA margins from continuing operations improve +330bps YoY. Revised FY26 guidance sees revenue & UPAT expectations lowered by ~4% at the midpoint, however Cash EBITDA guidance of A$119-124m (+19-24% YoY) was raised, supported by efficiency program delivery, more moderate Capex outlook, and a further A$6-9m of cost savings to be delivered over 2H26 (implying 2H26 Cash EBITDA of A$58-63m). We trim our underlying UPAT forecasts by -2 to -6%, which sees our price target reduce by ~7% to A$9.65. Although top line momentum has softened in the half, execution of IRE’s broader efficiency / modernisation story in our view remains on track (albeit early days). We therefore retain our BUY rating.