ASX industrials stock Mader Group Ltd (ASX: MAD) rose an impressive 4% yesterday.
Over the long term, Mader Group has been one of the best ASX industrials stocks to own. It has risen more than 700% in the last 5 years.
While Mader Group has experienced significant volatility so far in 2026, a new report from Bell Potter suggests there could be brighter days ahead.
Mader Group is a maintenance services company contracting to the resources sector. The company specifically provides specialised labour to maintain and repair heavy mobile and plant equipment.
Here is the latest guidance from Bell Potter.
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Entering FY27 with tailwinds
In a report released yesterday, the broker said this ASX industrials stock is benefiting from strong growth in Western Australia's iron ore sector.
This is driving demand for its heavy mobile equipment (HME) maintenance services.
Key points from the Bell Potter report:
- WA iron ore production increased 6% year-on-year in the March 2026 quarter, signalling higher mining activity.
- WA diesel consumption (a proxy for mining activity) rose 7% YoY in February 2026.
- The Australian Government forecasts iron ore production growth of 2.8% annually across FY26-27, compared with flat growth over FY23-25.
- This is positive for Mader Group because its core business services mining equipment fleets used in iron ore operations.
We believe upside to consensus revenue growth rates in FY27-28 is dependent on MAD's ability to diversify into new adjacent markets while expanding existing verticals.
Looking at the US market, the broker said market conditions across the region appear robust.
MAD's initiatives to accelerate labour deployment will be key to delivering higher revenue growth rates in the short-term (vs consensus expectations).
The broker noted it anticipates the ASX industrials stock will announce its next five-year growth strategy before its FY26 result update, representing a potential re-rate catalyst.
Buy rating unchanged
Bell Potter has retained its buy recommendation on this ASX industrials stock.
It also has a price target of $9.70, which indicates an upside potential of approximately 25%.
MAD is screening relatively undervalued compared with its historical multiples. We see MAD's risk-reward as attractive considering: 1) favourable market conditions are conducive of upgrades (the FY27 NPAT guidance is a forthcoming upgrade catalyst); and 2) announcement of the 5-year growth strategy may bolster short-to-medium term earnings expectations.
Bell Potter isn't the only broker tipping upside for this ASX industrials stock.
5 analyst forecasts via TradingView have an average price target of $9.27 on the company, indicating roughly 20% upside.
