Research notes

Freeport-McMoRan (FCX) is an American based miner that is heavily focused on copper mining and produces gold and molybdenum as by-products to its copper production. FCX owns significant interests in three out of seven of the largest copper mines in the world by-production, the Grasberg Minerals district in Indonesia, the Morenci mine in Arizona, and the Cerro Verde mine in Peru. Indonesia is the largest source of FCX’s revenue. The Grasberg district in Indonesia is the second largest copper mine in the world and the largest gold mine, despite gold being produced as a by-product. Additionally, it is one of the lowest cost mines in the world due to the high grades of copper and gold produced. FCX operates seven open pit copper mines in North America and two copper mines in South America.

Meta Platforms, Inc. (formerly known as Facebook, Inc.) is a leading global technology platform business headquartered in Menlo Park, California, US. Co-founded in 2004 by Mark Zuckerberg, Meta's mission is to connect people and build community through its innovative technology portfolio and social networking platforms.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories.

Light & Wonder (LNW) delivered a better than feared 2Q26 result, beating expectations at the EPSA line, though a softer top line tempered the reaction with shares closing up 4% on the day. Growth in Land-based gaming and iGaming more than offset ongoing softness in SciPlay, but revenue still came in below expectations. The highlight was margin, where disciplined cost management and a favourable mix drove expansion across all three segments. We think most of that gain holds through the balance of the year, even as mix shifts toward lower-margin outright sales in a heavily fourth-quarter weighted finish. We forecast 6.3% growth in consolidated adjusted EBITDA in FY26, with 3Q and 4Q representing 26% and 28% of the full-year outcome, respectively. We maintain our BUY recommendation, with an increased target price of A$174.

PNI’s FY26 underlying NPAT of A$138m (+21% on pcp) came in 7% below Factset consensus (A$148m) and 2% below MorgansF. Despite the headline result miss, we think PNI's FY26 underlying business performance was generally robust, with key business drivers like flows and AUM actually outperforming expectations. Solid progress for PAM and Life Cycle also points to a positive trajectory for PNI's overseas expansion, in our view. Our FY27/FY28 NPAT forecasts are modestly revised down (-1% to -2%), although changes are slightly larger at EPS (-7%) due to a share count adjustment. Our price target falls to A$23.41 (previously A$23.94), with our earnings changes offset by a valuation roll-forward. Maintain BUY call with >20% upside to our price target.

We incorporate the impact of Sydney toll reforms (subject to definitive agreements and various approvals expected in 2HCY26) and 2H26 monthly traffic data into our forecasts and valuation. TCL said the toll reforms were structured to be value neutral and not impact “near term” DPS. We largely agree on value – our target price adjusts -11 cps to $12.63/s albeit this includes actual June quarter CPI lower than we had expected. The near- term DPS impact is mitigated by key reform changes not applying until FY28. In coming years we expect TCL’s EBITDA growth to be constrained by Melbourne weakness while its interest costs (paid and expensed) rise faster than consensus expectations. Our modelling indicates TCL’s DPS in coming years may grow at a similar rate to APA Group (<2%/year). If TCL were to re-rate to APA’s yield then TCL would price in the $12/sh range. TRIM ahead of first-time FY27 DPS guidance.

GDF delivered a strong set of results for FY26, with FFO of 11.1cps reflecting growth of +54% (vs pcp), whilst also beating prior guidance (10cps) and our expectations. The heavy lifting was done by the lending book, as deployed capital tripled on FY25 and loan returns averaged 20% for the period. The property portfolio remains stable, with the key swing factors of Acacia Ridge and Morningside lease-up being conservatively set (MorgansF) for 1H28 and 2H27 respectively. With the stock trading at a 33% discount to NTA and an 8.2% distribution yield (FY27), we see upside to the current share price and reiterate our Buy rating with a $1.30/sh price target.

FY27 guidance in line on production but capex of $280-343m was well above expectations on Constellation construction and stripping ahead of first ore in 3Q27. Elevated near-term Tritton capex funds the development of Constellation and Mallee Bull, underpinning higher-grade mill feed and a path to 30ktpa of copper production by FY30. Maintain BUY with a A$0.55ps target price (previously A$0.53ps).

EDV has provided some preliminary numbers for FY26 with underlying sales, EBIT and NPAT largely in line with expectations. The company has, however, announced $372m ($311m after tax) in one-off costs (both cash and non-cash) relating to the write down of carrying values for assets as well as costs associated with the implementation of its strategy review. Further details on EDV’s performance are due to be released at its FY26 result on 24 August. We decrease FY27F and FY28F underlying EBIT by 2%. Despite this, our target price increases to $3.20 (from $2.80) due to an uplift in peer valuation multiples. However, with a 12-month forecast TSR of -3%, we downgrade our rating to TRIM from HOLD. We expect liquor demand to remain under pressure amid elevated interest rates, ongoing cost-of-living pressures and an uncertain macroeconomic backdrop. The new management strategy also carries execution risk, in our view.