The team at Bell Potter released two reports yesterday, one on ASX All Ords stock Southern Cross Electrical Engineering Ltd (ASX: SXE) and another on Imdex Ltd (ASX: IMD).
These two companies have risen by more than 40% year to date.
However, Bell Potter has a hold recommendation on both, and has just reduced its target price following key announcements from both companies.
Here's what the broker had to say.
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Southern Cross Electrical Engineering
Southern Cross Electrical Engineering is an electrical, instrumentation, communication and maintenance services company.
The ASX All Ords stock is up more than 55% in 2025.
However yesterday, the company announced it was unsuccessful in its arbitration proceedings claiming against the CPB Dragados Samsung Joint Venture ("CDSJV").
What was the arbitration?
The company's subsidiary Heyday lost its arbitration against the CPB Dragados Samsung Joint Venture relating to claims for additional costs on the WestConnex M5 tunnel project in Sydney.
The case hinged on strict time-bar clauses, which required claims to be lodged within specific deadlines. Despite substantial scope and schedule changes on the project, Heyday's remaining claims for about $22m were rejected.
In a report out of Bell Potter yesterday, the broker downgraded this ASX All Ords stock to a hold (previously buy).
Although the broker did note it does not view the unfavourable arbitration update as a reflection of the company's current approach to project execution, given an outstanding track-record of project delivery since the dispute occurred and the likely internal response to improve risk management.
We caveat the Hold thesis with our ongoing positive view of the underlying business given the company's strong orderbook and tender pipeline and favourable structural drivers.
The broker also downgraded its target price to $2.35.
It appears Bell Potter now sees the stock as fairly valued, as it closed yesterday at $2.39 each.
Imdex
The company is an Australian mining equipment and technology company operating globally.
Its technology includes drilling optimisation products, cloud-connected rock knowledge sensors, and data and analytics to improve the process of identifying and extracting mineral resources.
Its share price has risen more than 40% since the start of the year.
The company recently announced its acquisition of Advanced Logic Technology S.A. and its subsidiary Mount Sopris Instruments Inc.
These companies specialise in borehole geophysical imaging solutions, imaging probes and accompanying visualisation and data processing software.
Bell Potter believes the acquisitions strengthen IMD's earth science and digital analytics capabilities, but value creation depends heavily on achieving meaningful revenue growth from the acquired assets.
Value accretion from the ALT and MSI acquisitions is dependent on meaningful incremental revenue generation over the three year period post deal completion.
The broker has lowered its price target to $3.60 (previously $3.90) and maintained its hold recommendation on this ASX All Ords stock.
From yesterday's closing price of $3.40, this indicates an upside of 5.88%.
