Research notes

MGH has secured a further $855m order from Firmus (delivered over eighteen months), and sees our baseline earnings step up materially. MGH will also be investing a further $300m in Firmus, which including a marked-to-market gain on the initial stake, takes MGH’s holding to $500m (or 3.2%). The scope of the pipeline, in addition to the interest income to be earned from the Western Sydney Aerotropolis site sees earnings risks to the upside. Given the moving parts, execution risk is elevated and as a result we apply a 20% discount to the peer multiple applied in our SOTP, and a 1.4 beta in deriving our DCF. The opportunity in front of MGH is clearly immense, and whilst not without its risks, we see the potential for outsized returns – BUY reiterated, price target increased to $7.30/sh (previously: $6.00/sh).

Boeing is a leading global aerospace and defence manufacturer, founded in 1916 and headquartered in Arlington, United States. The company designs and produces commercial airplanes, military aircraft, satellites, and space systems for customers in more than 150 countries. With a commercial airline market share of approximately 43%, Boeing remains a central player in global aviation. The company enters 2026 focused on production ramp-up, certification milestones for the 737 MAX 7, MAX 10 and 777-9, and a strategic recovery path under CEO Kelly Ortberg. Its extensive order backlog and diversified defence programs continue to underpin long-term growth opportunities.

4Q revenue accelerated 43% to US$27m on strong US commercial execution, with FY26 revenue of US$90.2m (+28%), exceeding upgraded guidance of US$87m and ahead of expectations. 4Q US implanted patients increased 50%, supported by 22% growth in active physicians and 23% higher physician utilisation, while the salesforce reached 161 representatives at year-end, ahead of the 154 target. With FY26 revenue now established, the investment debate shifts to FY27 salesforce productivity and operating leverage. Notably, c60% of the US salesforce was fully trained exiting FY26, with management targeting 70-80% during FY27, which we view as the first meaningful test of whether this can translate into materially higher revenue per rep and improving operating margins. We update FY26 revenue, with A$2.94 DCF-based TP unchanged. SPECULATIVE BUY maintained.

Mastercard is a technology company that provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorisation, clearing, and settlements. The company offers integrated products and value-added services for account holders, merchants, financial institutions, businesses, governments, and other organisations.

ACE’s automated enforcement win in Kentucky is now the third contract of its kind awarded to ACE in the US, leveraging off a successful pilot program in the state and prior wins in Connecticut and Arkansas. ACE’s Kentucky win lifts our revenue & EBITDA forecasts by +1-2% in FY27-28. We roll forward our valuation and reduce the multiple used in our EV/Revenue & GP based price target. This sees our target price reduce to $2.00 (from $2.30). With a growing US pipeline and various contracts/tenders across AUS/US yet to be awarded, we continue to see a number of catalysts ahead of ACE into FY27. With 80% implied TSR, we reiterate our Speculative Buy recommendation.

CCP's FY26 NPAT of A$105.5m (+12% on the pcp) was a record and in line with consensus (VA A$104.4m, MorgansF A$102m). FY27 NPAT guidance of A$110m-118m (+8% vs the pcp at the midpoint) is solid, but the investment outlook is arguably the negative. Ledger investment guidance is down ~21% (midpoint) to A$200m-280m, with US purchasing down ~31% to A$100m-130m as the supply pulls back and competitive pressures persist. Operational efficiency/productivity has improved over FY26, however delivering on US divisional growth remains key to our long-term investment thesis. At ~7.7x FY27F PE, the valuation continues to appear undemanding. BUY retained.

VISA is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. It facilitates global commerce through the transfer of value and information among a global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities

We make minor changes to our forecasts ahead of the FY26 result on 20/08 to align with guidance for the second half to be “broadly in line with the first half performance”. We reduce FY26 EBITDA by 3% and FY27-28 by 5%. Our target price of $1.20 remains unchanged on valuation roll-forward.