Despite some headwinds, Ord Minnett has a positive view on ASX 300 companies Breville Group Ltd (ASX: BRG) and Electro Optic Systems Holdings Ltd (ASX: EOS).
Here's what the wealth and investment services firm had to say.
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Breville Group
This ASX 300 company has struggled since releasing half year results earlier this month.
It is an Australian designer and distributor of small kitchen and home appliances to more than 70 countries.
According to Ord Minnett, Breville posted flat first-half FY26 earnings, which was a solid achievement in the face of significant US tariff headwinds.
Having largely navigated its manufacturing transition, execution risks have diminished materially.
Ord Minnett believes the company is well-positioned to return to double-digit earnings growth beginning in FY27.
In terms of outlook, the company expects a modest increase in earnings before interest and tax in FY26. Such guidance appears prudent to us given residual risk from the impact of tariffs and the transition to new manufacturing facilities. Overall, as transitional pressures subside, we forecast a return to double-digit earnings growth in FY27, and upgrade our recommendation to Accumulate from Hold.
Electro Optic Systems Holdings
Electro Optic Systems has been one of the hottest ASX 300 shares over the past year.
It has benefited from global defence tailwinds and subsequently seen its share price rise 525% over the last 12 months.
This included a big gain yesterday on the back of FY25 results.
The ASX defence stock signed $424 million worth of contracts during FY25, compared to just $70 million in FY24.
The company engages in the development, manufacture, and sale of telescopes and dome enclosures, laser satellite tracking systems, and remote weapon systems.
The company recently faced a short-selling attack from US firm Grizzly Research, which EOS rejected as "misleading" and "manipulatory."
While Ord Minnett said EOS provided credible rebuttals to many of the claims, questions remain regarding its $120 million conditional Korean high-energy laser contract.
Ord Minnett notes that while EOS produced enough data and credible explanation to counter the Grizzly report, their response still leaves questions around the $120 million conditional Korean High Energy Laser Weapon (HELW) contract.
Despite the recent upheaval, our investment thesis of increasing geopolitical tensions and defence expenditure on C-UAS, RWS, HELW and Space remains unchanged. As such, we maintain our Speculative Buy recommendation on EOS and our target price is unchanged at $12.72.
From yesterday's closing price of $7.75, Ord Minnett's price target indicates an upside of approximately 64%.
