A bunch of new research notes have come out this week, with brokers issuing buy ratings on some interesting companies.
Let's see which ones they like.
Image source: Getty Images
NextDC Ltd (ASX: NXT)
NextDC shares are flat over the past 12 months, having traded as low as $10.74 and as high as $17.93.
UBS has a price target of $22.55 on NextDC shares compared to $14.03 currently.
The broker referred to a recent announcement NextDC made to the ASX, which said that following further contract wins, NextDC's contracted utilisation had increased by 11% to 740 megawatts.
NextDC said at the time, "the pro-forma forward order book is expected to progressively convert to billings, revenue and EBITDA over the period FY26 to FY30''.
UBS said there was "very little" detail in the update, but said it was "another substantial win''.
The broker added that it was not possible to put a number on the earnings impact, as it was unclear whether it was a neocloud or AI contract.
Alkane Resources Ltd (ASX: ALK)
UBS has actually downgraded its price target for Alkane by 40 cents to $1.75, but still has a buy rating on the gold stock, which was last changing hands for $1.35.
The broker said the company's recently-released quarterly costs came in above their estimates, and FY27 guidance was soft.
Alkane also proposed a maiden 2-cent dividend in the recent update, having built its cash holdings to $432 million.
Managing Director Nic Earner said it was a good end to the year for the company.
He said:
It has been another great quarter for Alkane, producing 40,949 ounces of gold and 456 tonnes of antimony (42,491 ounces of gold equivalent) over the full quarter, which places full year FY26 production at 168,337 ounces of gold equivalent, in the top half of guidance.
UBS said M&A activity would remain in focus as the most viable way for the company to grow production.
The broker added:
Near term production in Tier 1 jurisdictions remains the preference, and we continue to view ALK's holding of Medallion Metals (ASX: MM8), with its Ravensthorpe Gold Project as an interesting option.
BCI Minerals Ltd (ASX: BCI)
Shaw and Partners has a buy rating on this salt project developer, saying in a research note this week that the company was progressing well.
The broker said:
Mardie has advanced significantly since our recent initiation, achieving construction completion of 85% (82% including the crystalliser lining program), up from 81% in March. Crucially, the operation has commenced salt precipitation on schedule, exiting the initial filling phase to become an active producer with 49kt of crystallised salt on pavement at quarter end. The critical path to First Salt on Ship remains governed by natural solar evaporation and weather conditions during this early phase. Management continues to target operational readiness for FSOS by MarQCY27.
Shaw and Partners said as the project closes the gap to its first commercial harvest, "the current market valuation continues to significantly discount the tier-1 replacement value of this 60-plus year infrastructure asset. We expect a major equity re-rating as execution risks give way to structural cash flow''.
The broker has a price target of 75 cents on BCI compared to 42.75 cents currently.
