Company trading updates are starting to trickle in, and with them come new recommendations from the brokers.
I've selected three research reports recently issued by the team at Macquarie, profiling companies they think are undervalued at current levels.
Let's see who they like.
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Viva Energy Ltd (ASX: VEA)
Viva this week said in a statement to the ASX that the refining margin at its Geelong oil refinery was up 156.4% over the same period last year, while volumes added 1.5% over the period.
This would likely translate into a boost in first-half EBITDA from $305 million last year to $770 to $780 million for the first half this year, the company said.
Viva Chief Executive Officer Scott Wyatt said:
Our strong financial results reflect a substantially improved refining margin environment which has been driven by a regional shortage of oil supply and refining capacity, as well as improving retail sales growth and continuing strength of our commercial businesses. Domestic refining has reduced dependency on international refineries and will continue to play a critical role in maintaining fuel supply security into the future.
Macquarie increased its price target for the company on the back of the strong expected results, with the price target now $3.70, up 9%.
Viva shares are currently priced at $2.71.
IGO Ltd (ASX: IGO)
IGO this week reported that its Greenbushes lithium operation had improved its production over the quarter from 351,000 tonnes of concentrate to 387,000 tonnes.
Underlying EBITDA was $118 million for the quarter, down $1 million from the previous quarter.
Managing director Ivan Vella said:
IGO finished FY26 with strong operational momentum across key parts of the business, improved Group safety performance and a stronger cash position. Greenbushes also delivered a stronger final quarter, with improved production, stronger realised pricing and an 80% EBITDA margin. The stronger final quarter resulted in FY26 production and costs finishing toward the top end of revised guidance, while the recommencement of cash flow through Windfield reinforces the quality of this world-class asset and the future potential from the value optimisation work underway.
Macquarie said IGO's production beat consensus estimates by 5%, despite a fire at one of the company's operations.
They added that the company has enough cash on hand to consider paying a 3 to 7 cent final dividend.
Macquarie has a price target of $10.50 for IGO, compared to $6.89 currently.
Bannerman Energy Ltd (ASX: BMN)
Bannerman recently gave an update on its Etango uranium project in Namibia, saying 92% of earthworks were complete, with the project currently on schedule and on budget.
Macquarie said the company has "materially derisked" the project via its joint venture with Chinese company CNNC.
Macquarie has a price target of $5 on Bannerman compared to $2.97 currently.
