Research notes

Microsoft is an American multinational technology company that develops and markets software, services and hardware. The company is best known for its software products, including Microsoft Windows operating systems, the Microsoft Office suite and the Internet Explorer web browser. Its five main operating segments include: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division.

Named one of Time Magazine’s Best Companies of 2024, KLA Corporation makes high-tech equipment used in the production of semiconductors, which are essential components in electronic devices like smartphones and computers. It helps manufacturers improve the quality and efficiency of their production processes by providing tools that detect and analyse defects in the manufacturing process.

Mastercard is a technology company that provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorisation, clearing, and settlements. The company offers integrated products and value-added services for account holders, merchants, financial institutions, businesses, governments, and other organisations.

Honeywell International is a world-wide diversified technology and manufacturing company. It consists of four key segments: (1) Aerospace, (2) Performance Materials & Technologies, (3) Building Technologies, and (4) Safety & Productivity Solutions. The company was founded in 1885 and is headquartered in Charlotte, North Carolina, United States.

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.

Chipotle Mexican Grill is the largest fast-casual restaurant chain in the US with total system sales of US$9.9bn in 2023. Chipotle’s store network is mainly company-owned and not franchised (apart from the Middle East). Chipotle sells burritos, burrito bowls, quesadillas, tacos, and salads made using fresh, high-quality ingredients, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany.

Shell PLC, previously Royal Dutch Shell PLC, is a British multinational integrated oil and gas company with headquarters in London and operations in over 70 countries. Shell operates across five divisions: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions.

Glencore International AG (GLEN.LSE) is a global diversified natural resources company, headquartered in Baar, Switzerland. Established in 1974 as Marc Rich & Co, the company rebranded to Glencore in 1994. It operates across multiple sectors, including metals and minerals, energy, and agriculture, making it one of the world’s largest commodity trading and mining companies. Operating in over 50 countries, Glencore’s core business activities span the entire commodity value chain, from sourcing and logistics to processing, refining, and marketing. Glencore’s extensive portfolio includes assets in copper, cobalt, zinc, nickel, coal, oil and agricultural products. It is also involved in the production and distribution of commodities essential for global industries, infrastructure, and consumer goods. In recent years, Glencore has focused on optimising its asset portfolio, improving operational efficiency, and enhancing its ESG profile.

2H26 EPS and DPS were flat vs 1H26 and below consensus expectations. >FY27F EPS downgraded c.5%. Target price +2% to $32.32/sh. Achieving FY29 financial targets requires significant outperformance of our forecast. >At current prices, potential TSR is -9%. Trading multiples remain stretched. Four-year equity IRR is c.3% pa, well below opportunity cost. TRIM overweight positions.

Honeymoon beats despite weather disruptions - Drummed production of 359klbs beat MorgansF (+8%) and Consensus (+17%), despite 19 lost production days from heavy rainfall during August. Record IX flow rates largely offset declining tenor, while FY27 guidance remains unchanged. >Wide-spaced transition remains the key value driver - BOE commenced flushing at the first wide-spaced wellfield, with early results supporting BOE’s confidence in the design. Final flushing data and initial leaching results in 2Q27 are expected to be a key validation point for the NFS assumptions underpinning Honeymoon's lower-cost, longer-life future. >The well runs dry - Alta Mesa production collapses 95% yoy. Production fell to just 10klbs U3O8 (100% basis), with permitting delays subsequently forcing a production halt and further eroding confidence in future growth expectations. >We upgrade to a TRIM rating (previously SELL) and an increased price target of A$1.35ps (previously A$1.30ps).