If you are looking for big returns, then Bell Potter thinks the ASX All Ords stock in this article could be worth considering.
It has just named the stock as a buy after its record result.
Image source: Getty Images
Which ASX All Ords stock?
The stock that Bell Potter is recommending to clients is Australian Agricultural Company Ltd (ASX: AAC).
It is a vertically integrated cattle and beef producer with operations across the entire supply chain across genetics, nutrition, pastoral operations, feedlots and processing.
Bell Potter was pleased with the ASX All Ords stock's performance in FY 2026, noting that its record result was ahead of expectations. It said:
AAC reported FY26 Operating EBITDA up +23% YoY to $71.6m and ahead of our forecast of $69.2m. Key operating statistics of the result included: Operating results: Revenue of $422.1m was up +9% YoY (vs. BPe $426.7m). Operating EBITDA of $71.6m was up +23% YoY (vs. BPe $69.2m) and included $9m in flood costs, implying an underlying figure closer to $80.6m and implying +38% YoY growth. Liveweight (lwt) sold was down -2% YoY.
Revenue per Kg lwt was up +11% YoY (with meat pricing up +8% YoY and live pricing +17% YoY) and EBITDA per Kg lwt sold was up +25% YoY (+40% ex-flood impact). Cost of production per kg was up +1% YoY, with kilograms produced up +5% YoY. Statutory EBITDA of $208.9m, includes an unrealised favourable $128.6m movement in herd values.
Looking ahead, while demand for global beef is expected to remain strong, Bell Potter notes that the Middle East conflict is having a negative impact on costs. It adds:
Outlook: Qualitative comments include: (1) Global beef demand is expected to remain strong; (2) Headwinds which emerged in late FY26, may more meaningfully impact FY27e including the conflict in the Middle East (which is causing inflationary pressures in energy, transport and production).
Big potential returns
According to the note, Bell Potter has retained its buy rating on the ASX All Ords stock with a trimmed price target of $1.85 (from $1.95).
Based on its current share price of $1.31, this implies potential upside of 40% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
Our Buy rating remains unchanged. AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs. While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.
