Research notes

PIQ has announced the CMS has confirmed the US$390.75 national reimbursement rate for PromarkerD, effective 1 January 2026. Confirmation supports distribution partnering, but sales traction likely to remain challenging without a substantial sales and marketing team or distribution partner. Maintain HOLD at A$0.43ps target price and prefer to see commercial traction before turning more positive.

Advanced Innergy (AIH) is a global material science company that develops, supplies and installs products for the protection of critical infrastructure across various industries. AIH has robust cyclical growth prospects in its traditional subsea oil & gas market as key customers report record backlogs and strong visibility, underpinned by energy security and a preference for long-cycle projects with favourable economics. This will be supplemented by growth in new markets such as offshore wind and EV batteries. Importantly, AIH has a strong competitive position, well developed intellectual property, an innovative culture and balance sheet optionality. We initiate coverage with a BUY rating and $1.40 target price.

While WEB reported strong top line growth, this did not translate into strong NPATA growth (fell 7.4% on the pcp). However, cashflow was stronger than expected and the balance sheet is in a strong net cash position. Pleasingly, WEB’s trading update was stronger than expected and top line growth has accelerated. FY26 guidance was slightly stronger than expected and we have upgraded our forecasts. WEB’s outlook comments for FY27 were also upbeat. With 19% upside to A$5.20 price target and trading on undemanding fundamentals, we upgrade to an Accumulate recommendation.

SKS’s recent updates and revised FY26 guidance continue to solidify the group’s strong outlook in FY26-27F. We upgrade to a Buy rating with a revised $4.25 PT.

The WorkPac acquisition is +10% EPS accretive or +5-6% including the dilution from the recent equity raise. This transaction is a step-out from the company’s strategy to acquire more specialised services businesses, though it sends a clear signal about TEA’s visibility over demand in its key end-markets. WorkPac gives TEA a deeper labour pool which will be helpful in a tight market as it endeavours to self-perform all its services. This has the capacity to positively impact margins. Additionally, TEA should benefit from improved speed of mobilisation, which is critical given the fast-paced nature of some of its responsive services. Our target price increases to $5.40 from $5.00. BUY maintained.

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.

Constellation Software (CSU) acquires, manages and builds industry specific software businesses aka Vertical Market Software (VMS) companies. Uniquely they are perpetual owners of all their businesses. CSU has six operating groups: Volaris, Harris, Jonas, Vela Software, Perseus Group and Topicus, which service customers in over 100 markets worldwide. Each operating group serves as a holding company for dozens of underlying software companies. The company is headquartered in Toronto, Canada, and has offices in North America, Europe, Australia, South America and Africa.

While we were expecting a weak 1H26 result and revised FY26 guidance, the quantum was greater than expected, with the amount further impacted by a change in accounting policy relating to revenue recognition for gift cards which has significantly restated the pcp. We have made material revisions to our forecasts. Earnings uncertainty remains high in the near term given cyclical and structural threats and at a time WJL is investing in the business for longer term success. The result and outlook is somewhat overshadowed by HLO’s A$0.90 non-binding indicative offer. In our view, WJL is now in play and will likely be taken over.

While NUF’s FY25 result was weak, it was slightly above guidance. A solid Crop Protection result was overshadowed by a poor Seed Technologies performance. Gearing was far too high at 2.7x, however it was better than feared Outlook comments were upbeat. In FY26, material earnings growth and a reduction in leverage ratios is expected. We have upgraded our forecasts. Now that there is certainty on Seed Technologies future, industry operating conditions have improved and there is a clear pathway to deleveraging the balance sheet, we upgrade NUF to a Buy recommendation and A$3.20 price target.

CC5 has identified over $45m in sales revenue from its existing client base of seven pharmaceutical companies. The launch of the new contact plate now provides a complete automated solution for customers. CC5 has ended 1Q26 in a reasonable cash position which will be enhanced in 2Q26 by the exercise of options, R&D tax refund and additional committed sales. Further catalysts include additional contracts with new and existing customers.