Research notes

CAR’s 1H26 result was strong overall, in our view, and was largely in line with consensus (Visible Alpha) expectations. CAR reported double-digit percentage revenue and EBITDA growth in its key offshore markets (North America, Latam and Korea), whilst Australia revenue growth remained sound (~+8% vs the pcp). We make minor changes to our FY26 assumptions (details below). CAR is trading on ~22x FY27F PE, which we view as an attractive entry point given its double-digit EPS growth profile. We move to a BUY recommendation with a $35.20 PT.

LVMH Louis Vuitton Moët Hennessy SE is a multinational luxury group conglomerate based in Paris, France. It operates five business segments: Wines and Spirits; Fashion and Leather Goods; Perfume and Cosmetics; Watches & Jewelry; and Selective Retailing. Its 75 brands include Dom Pérignon, Moët & Chandon, Veuve Clicquot, Hennessy, Louis Vuitton, Christian Dior, Givenchy, Acqua di Parma, Tiffany & Co, TAG Heuer, Bulgari, DFS, and Sephora. LVMH operates over 5,600 stores worldwide. LVMH was formed by Bernard Arnault, Alain Chevalier and Henry Racamier in 1987 from the merger of Louis Vuitton and Moët Hennessy. Louis Vuitton itself was founded as a manufacturer of luggage in 1854. Moët Hennessy was formed in 1971 through the merger of the champagne house Moët & Chandon (founded 1743) and the cognac producer Hennessy (founded 1765). Some of LVMH’s more recent acquisitions include Tiffany & Co. in 2020, Rimowa in 2016 and Loro Piana in 2013.

H&M Hennes & Mauritz AB is a multinational fashion and design group conglomerate based in Vasteras, Sweden. Its 11 brands include H&M, COS, Weekday, Monki, H&M Home, & Other Stories, Arket, Afound, The Singular Society, Creator Studio and Sellpy. Across these brands, its main operating segment is affordable and sustainable wardrobe essentials, but it also offers fashion pieces and unique designer collaborations, accessories, stationery, homewares, shoes, bags and beauty products. H&M Group operates over 4,300 stores worldwide. 

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.

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company’s product offering through its stores includes merchandise and content purchased for resale, and products offered by third-party sellers. It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, Blink, eero, and Echo, and develops and produces media content.

We initiate coverage on Sky Metals (ASX.SKY) with a SPECULATIVE BUY rating, price target A$0.32ps. SKY wholly owns the Tallebung Tin Project in New South Wales - a historic tin field underpinned by a JORC Mineral Resource of 15.6Mt at 0.15% Sn (23.2kt contained tin) and an Exploration Target of up to 32Mt at 0.17% Sn at the upper end of the range. Tallebung mineralisation has demonstrated strong amenability to ore sorting, with test work indicating order-of-magnitude head grade uplift, which is a key driver of project economics. We model an initial 8-year operation producing a 3.5ktpa contained Sn operation producing at an AISC of A$28,494/t, supported by early-stage upgrading and a capital-efficient processing flowsheet.

PME has been sold off heavily as investors increasingly worry that AI could structurally erode the economics an commoditise premium imaging SaaS platforms. For PME, that feels misunderstood. Bravery required with volatility high and trend weak, but this has proven to be a good time to pick up PME shares. Upgrade to BUY on weakness. 1H26 results due 12th of February.

REA’s 1H26 result was broadly in line with expectations (being only ~1% under Visible Alpha consensus across most line items). Whilst the negative share price reaction on result day was arguably due to a variety of factors (e.g. cost outcomes in the first half, volume guidance being lowered for the full year), the result itself highlighted the resilience of the franchise in a tougher volume environment, with strong yield growth (+14%) offsetting a 6% decline in listings.

WOR flagged a larger than usual 2H skew in November, which means a softer result should come as no surprise. Analysis of capex data from a basket of ~20 of the largest companies within each of WOR’s key verticals indicates a flattish CY26 for Energy and a weak year ahead for Chemicals. Conversely, Resources capex is expected to rise materially. A softening cycle has seen the key lead indicators turn negative which means outperformance will hinge upon WOR’s ability to execute its EPC strategy to capture more of the value chain. As a result of the softer 1H and a relatively subdued capex outlook for CY26, we trim our FY26 EBITA forecast by 2%. We reduce our price target to $16.40 (from $16.80). Analyst coverage transfers with this report.