Research notes

Cisco Systems, Inc. (CSCO) is a leading multinational technology conglomerate headquartered in San Jose, California. The company has established itself as a dominant force in the digital communications landscape since its founding in 1984.

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.

Wrkr (WRK) is an Australian regtech company that helps employers simplify workforce compliance across the hire to retire lifecycle. FY26 is a critical transition year for WRK, with the onboarding of large client wins setting it up to turn a profit in FY27. With a strong balance sheet (A$16m of cash at 1H26) and playing in markets supported by regulatory tailwinds, we think WRK is well positioned to deliver sustainable growth. We initiate coverage on WRK with a BUY recommendation, with the stock trading at a ~25% discount to our blended valuation of A$0.14 per share.

1Q26 delivered a step-change in commercial execution, with 41 implants (+128% q/q) and preliminary revenue of US$2.25-2.36m, materially ahead of prior run-rate. Importantly, growth is being driven by repeat usage, not just new site additions, with the majority of 1Q implants coming from existing centres, supporting confidence in utilisation and scalability. Leading indicators remain strong, with 37 purchasing agreements, 55 physicians trained, and double-digit physician training demand, alongside with emerging multi-site IDN/GPO contracts. Commercial bottleneck remains execution (sales capacity and contracting), not demand, with patient backlogs building and physician engagement “very high”. We make no changes to CY26-28 forecasts or A$2.47 DCF-based valuation. BUY.

ORA’s trading update highlighted challenging operating conditions at Saverglass stemming from the ongoing conflict in the Middle East. The conflict has affected operations both directly and indirectly: directly through the effective closure of ORA’s Ras Al Khaimah (RAK) facility in the UAE, and indirectly through lower spirits volumes and an adverse product-mix shift, which have weighed on earnings. We adjust FY26/27/28F underlying EBIT by -8%/-11%/-10%. Our target price declines to $1.55 (from $2.30) and we maintain our HOLD rating. Given the ongoing uncertainty surrounding the conflict in the Middle East, visibility on the timing of a potential restart at the RAK facility remains limited. In addition, global consumer confidence and spirits demand have already been negatively affected by the conflict and may remain subdued for some time, even in the event of a near-term resolution. Given this uncertainty, we believe it is prudent to await further updates before reassessing our view. Within the Packaging sector, our preference remains Amcor (AMC, BUY, $76.00 TP).

Diageo is a global leader in premium alcoholic beverages and the number one player in the international spirits category. The company owns nine of the world’s top 30 spirits brands and operates across multiple categories including Scotch whisky, vodka, rum, gin, tequila, beer, ready-to-drink (RTD) products and liqueurs. Its portfolio features iconic names such as Johnnie Walker, Crown Royal, Buchanan’s, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan rum, Baileys liqueur, Don Julio tequila, Tanqueray gin and Guinness stout.

SIG is a leading healthcare wholesaler, distributor and retail pharmacy franchisor with operations in Australia, NZ, Ireland and the UAE. We are forecasting ~20% EBIT growth p.a. over the next few years driven by strong LFL sales growth, store rollout (domestically and internationally), operating efficiencies and $100m p.a. synergies by FY29. Given the share price weakness, we have upgraded our recommendation to BUY (from ACCUMULATE) with an unchanged target price of $3.36 and 26% upside.

6K Additive (6KA) is a US-based advanced materials company that upcycles metal waste into engineered feedstock, producing high-value powders and alloys for aerospace, defence, medical, energy, and industrial applications. The company delivered 4Q25 revenue of US$5.6m (representing a run-rate of ~US$22.4m pa) with over 100 active customers including ABB, Boeing and Ford. 6KA has a potential sales pipeline of ~US$250m pa and plans to use proceeds from its recent IPO (Dec-25) to consolidate and scale its operations in the US. This will result in a 5x increase in powder production capacity (from 200mt to 1,000mt) and deliver significant margin improvement and production efficiency. We initiate coverage on 6KA with a SPECULATIVE BUY rating and a target price of $1.30. Backed by proven technology, a closed-loop model, and broad customer validation, we believe the company is well-positioned to benefit from strong demand in metal additive manufacturing and US government initiatives to reshore the sourcing and processing of critical minerals. Trading on 3.7x FY27F (Jun Y/E equivalent) EV/Revenue versus a domestic peer median of 9.5x, we view 6KA’s valuation as relatively attractive - though suited to more assertive investors.

MFG has given an end-to-March 2026 quarterly FUM update. FUM (A$37.5bn) was down 6% for the quarter due to a combination of outflows across most funds and market movements. Overall this was a softer quarter at the headline level, albeit some impacts from market volatility are unsurprising. We downgrade our MFG FY26F/FY27F EPS by -1%/-8% due to slightly weaker FUM assumptions and also applying more conservatism to our future Barrenjoey earnings forecasts. Our PT falls to A$11.99 (from A$12.43). Whilst MFG’s Investment Management performance remains patchy, we think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways for growth. MFG also retains a strong balance sheet (~A$650m of liquidity, post deal). BUY maintained.