Broker tips resurgent ASX All Ords stock for more 'strong growth' in FY 2026

A leading broker expects more outperformance from this fast-rising ASX All Ords company.

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The All Ordinaries Index (ASX: XAO) has gained 23.1% since hitting a 52-week low on 7 April, but this resurgent ASX All Ords stock has more than doubled those returns.

The fast-rising company in question is LGI Ltd (ASX: LGI).

If you're not familiar with LGI, the company is focused on recovering biogas from landfills and converting that into renewable electricity and saleable environmental products.

LGI shares closed down 3.8% on Friday, trading for $3.81 apiece.

Still, that sees shares in the ASX All Ords stock up an impressive 47.1% since the 7 April closing bell.

And according to the analysts at Canaccord Genuity, LGI is well-placed to deliver more "strong growth" in FY 2026.

What's been happening with the ASX All Ords stock?

LGI reported its full year FY 2025 results on 12 August.

Highlights included a 14% year-on-year increase in statutory and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $17.4 million.

The ASX All Ords stock achieved a 43% increase in electricity generating capacity, noting that it commissioned the Canberra (Mugga Lane) upgrade, and a new facility in Sydney (Eastern Creek), on time on and on budget.

Commenting on the results on the day, LGI CEO Jarryd Doran said:

By all measures, FY25 has been a solid year. Operationally, all key metrics have improved for LGI from biogas recovery, megawatt hours of electricity and generated ACCUs [Australian Carbon Credit Units], while maintaining a safe workplace and supporting the environment.

Looking ahead LGI expects FY 2026 underlying EBITDA to grow by 25% to 30% versus FY 2025.

The company also reported that it is "well advanced" in expanding its pipeline of near-term committed projects, from 47MWs to 56MWs.

Why is Canaccord bullish on LGI shares?

Having run their slide rule over LGI's results, Canaccord analysts Conor O'Prey James Bullen noted that the ASX All Ords stock delivered FY 2025 EBITDA in the middle of the guidance range.

They added, "Of particular note was 2H FY25A EBITDA of $10.1m strongly underpins FY26E EBITDA guidance."

According to the analysts:

An in-line result, guidance for strong growth in FY26 and the announcement of a big increase in planned generation capacity to make for a very satisfactory release for LGI.

Our EBITDA estimates remain broadly as they were before and, rolling our valuation model with its larger pipeline, sees our target price increase from $3.50 to $4.30 per share and we stay at buy.

That represents a potential upside of just under 13% from where the ASX All Ords stock closed at on Friday.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended LGI Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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