Research notes

Hermès International, a French high-fashion luxury goods manufacturer, was founded in 1837 by Thierry Hermès. Hermès is known for its high-end craftsmanship. It specialises in leather goods, lifestyle accessories, home furnishings, fragrances, jewellery, watches, and ready-to-wear apparel. Many of its products have an equestrian theme, reflecting Hermès’ heritage in saddle making. Some of Hermès products, notably the Birkin and Kelly handbags, as well as its silk scarves, have attained iconic status in consumer culture.

A busy 4Q26 for COI, renegotiating the Santos-Mahalo deal, building up its balance sheet, and resetting the CleanCo GSA with a longer timeline. Gas reservation and energy market volatility has brought selling pressure to domestic gas developers. We maintain a SPECULATIVE BUY rating with an updated A$0.20 target price.

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.

SKS reported unaudited FY26 revenue of $347.9m (+33% vs FY25), +2% ahead of guidance. The group also delivered stronger-than-anticipated operating leverage, delivering FY26 PBT of $39.3m, +15% ahead of MorgansF $34.0m. We see SKS’s levels of work in hand and pipeline as continuing to support growth and sustained margins, which should see the group deliver further leverage as its pipeline of DC work converts into FY27-28F. We rebased our PBT margin forecasts higher to adjust for this new baseline, driving ~14-20% PBT upgrades in FY26-28F. We retain our ACCUMULATE rating with a revised PT of $9.40/sh (from $8.95/sh).

Alphabet Inc., known predominantly as the holding company of Google, is an American multinational technology conglomerate. The company offers a range of products and platforms, including Search, Google Maps, calendar, ads, Gmail, Google Play, Android, Google Cloud, Chrome and YouTube. Its hardware product range includes Pixel phones, smartwatches and Google Nest home products. Alphabet Inc. is also known for its online advertising services, internet services, and licensing and research & development services. The company is headquartered in California, US, but is present across the Americas, Europe and Asia-Pacific.

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.

Starbucks Corporation is the largest retailer of specialty coffee in the world. Starbucks was founded in 1971 as a retailer of coffee beans and ground coffee, operating from a single store in Seattle’s Pike Place Market. After it was acquired by Howard Schultz in 1987, the business grew exponentially. Its global footprint now comprises over 38,000 stores in more than 80 markets, with Starbucks Reserve ® Roastery locations in Chicago, Milan, New York, Seattle, Shanghai and Tokyo.

Following ASIC approving the scheme of arrangement by which Zurich Financial Services Australia will acquire all the issued shares we discontinue coverage of Clearview Wealth (CVW AU). Our forecasts, target price and recommendation should no longer be relied upon for investment decisions.

FY26 operational progress was strong, with DETECT enrolment accelerating and reimbursement economics improving, while G1 development remains on track. EPI reached 50 DETECT patients in July, ahead of guidance, with 20 leading US centres now actively enrolling and management confident of reaching 210 by end 1HCY27. FY27 cash outflow is expected at A$45-48m, reflecting peak DETECT and G1 spend, but management expects these costs to fall materially in FY28; we view this as a timing shift rather than a structural increase in funding requirements. We raise FY27 cash burn/EBIT estimates and lower FY28 estimates accordingly. We retain our A$2.23 DCF-based target price and SPECULATIVE BUY rating.

Kering is a French multinational luxury goods group and one of the world's foremost luxury conglomerates, alongside LVMH and Richemont. Founded in 1963 by François Pinault, its portfolio is concentrated on personal luxury goods. Core houses include Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, and Brioni, alongside jewellery brands Boucheron, Pomellato, DoDo, and Qeelin.