Research notes

McDonald’s Corporation (MCD.NYS) is a global QSR (Quick Service Restaurant) business known for signature menu items such as the Big Mac, Quarter Pounder, Chicken McNuggets, and Fries. The Golden Arches logo is one of the most instantly recognisable symbols of American consumer culture in the world.

We recently attended a site visit to MEK’s Murchison Gold Project (MGP) following the release of its 4Q26 result. Whilst the Q4 result rounded out a tougher 2H26, we think MEK is well positioned to rebound in FY27 as Andy Well continues to ramp up in H1, followed by first ore out of Turnberry in Q3. The site visit took us underground at Andy Well, through the adjacent processing plant, and to the concluding open pit operations at Turnberry. We view the transition to a pure owner-operator underground model as a clear point of differentiation for MEK as it enters FY27. Following an analyst change, we retain a BUY rating with a TP of A$0.31 per share.

SGH’s share price closed down 10% following the release of forward guidance, which sees EBIT forecast to be flat or increase low single-digits through FY27. While management is firm in their aspiration to compound EBIT/EPS 10% (pa) through the cycle, this is unlikely in FY27 as growth in the 12-months ahead remains more incremental, than transformational, and M&A (c.50% of their growth target) is elusive. Given we suspected FY27 would be a year of consolidation, we are prepared to look through to the growth in FY28 (FY28 EBITg: 14%) coming from Crux, potential property realisations, and M&A. Buy retained, with a $50/sh price target.

AOV reported in line with guidance, delivering FY26 sales growth of +3%; EBITA +2%; and NPATA +1%. FY27 guidance for modest growth (MorgansF EBITA +1%). The result was in line, but the FY27 outlook underwhelms, implying another year of meagre revenue and EBITA growth. While valuation support is evident (~7x PE), we see limited scope to re-rate given the cyclical backdrop and ongoing investment required to drive growth. We move to HOLD (from ACCUMULATE).

BOQ announced finalisation of its capital return related to the equipment finance whole-loan sale, alongside completion of ME customer migration to its digital bank platform. We make material forecast downgrades. Target price reduced to $6.94/sh. ACCUMULATE retained at current prices, but noting only a c.13% potential TSR including the special dividend. BOQ is trading on c.0.9x P:TBV and c.11x PER.

BB1 has released positive top-line results in its European ADHD study, which gives the company confidence to undertake a pilot study ahead of a pivotal study in the US. This follows a similar path the company is pursuing with autism (ASD). Following the release of the FY26 result, together with a A$17m capital raise, BB1 is financially well placed as the key catalyst of top line results for ASD approach. We have made no changes to our A$1.76 valuation and SPECULATIVE BUY recommendation.

DXC delivered on its FY26 guidance (FFO and Distributions of 20.9 cps), in line with MorgansF and Consensus. DXC also outlined flat distribution guidance for FY27, amending the payout ratio as the business navigates higher interest costs (ie FFO is likely to go backwards in FY27 by mid to low single digits). With 73% of income on fixed reviews (27% CPI-linked), the high-income visibility is offset against limited levers to combat higher rates. Given the portfolio’s capacity to grow rental income c.3% pa, the interest rate headwind should be temporary, starting to reverse by FY28, once the average debt cost converges with market rates. Despite DXC trading at an undemanding price to NTA discount of 30%, we remain on a HOLD ($2.70/sh price target), as the discount to NTA is offset by an elevated distribution yield of 7.8% and payout ratio (>100%), a yield which we expect will remain relatively flat over FY27/28 and potentially into FY28/FY29.

CAR’s FY26 result was solid overall and broadly in line with expectations. Double-digit constant-currency (c/c) growth in revenue and EBITDA across its offshore regions (US, LatAm, South Korea) was a highlight. Guidance implies double-digit revenue and EBITDA growth (c/c) is maintained into FY27, with investment in key growth regions/AI/product ongoing. We remain positive on CAR’s investment thesis. Buy. Price target A$34.00 (previously A$33.40).

3Q earnings growth did not track to the earnings growth expected by the market (albeit both revenue and costs were impacted by short-term and seasonal factors). 12-month target price reduced to $31.67, driven by moderation of forecasts. TRIM retained, with potential TSR at current prices of c.-7% (incl. 4.5% cash yield).

WRK has completed a capital raising and provided an operational update. While the slower client ramp-up behind the capital raise is disappointing, we see it as a timing issue rather than a structural one. The drivers behind WRK's expected near-term earnings uplift remain intact, underpinned by signed contracts now converting to revenue. Off a low base, we cut our FY26F/FY27F EPS by >10%, reflecting the capital raise and business update including FY27 ARR guidance scenarios. Our target price is lowered to A$0.12 (previously A$0.14). Maintain BUY with >20% upside to our target price. As part of the capital raising, the company also provided a business update. Key points included: 1) FY26 cash receipts of A$18.2m were up a healthy ~84% on the pcp (A$9.9m), with FY26 net operating cash flow of -A$1.6m (vs A$0.6m in the pcp), compressed by higher investment spend; 2) FY26 ARR was ~A$10m, with FY26 EBITDA expected to be -A$6m including an approximate -A$0.5m impact from the PaidRight transition; and 3) WRK has released FY27 ARR and revenue scenarios based on various levels of client onboarding, with a base case FY27 revenue scenario of A$24m.