Profit season gives analysts plenty to work with in terms of identifying companies they think might be undervalued.
I've had a look at the recent broker reports and come up with two under-the-radar companies that brokers like the look of.
Let's have a look at what they're saying.
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LGI Ltd (ASX: LGI)
LGI is an innovator in the energy space and converts biogas from landfill into energy.
The company delivered a solid FY26 result last week, with revenue of $39.8 million, up 17% on the previous year, and underlying net profit of $8.8 million, up 35%.
Chief Executive Officer Jarryd Doran said regarding the result:
In FY26 we outperformed all our key operational drivers with year-on-year biogas recovery increasing by 33%, Australian Carbon Credit Units created increasing 18%, and a 29% increase in renewable energy from our fleet of power stations. In summary, the Company's strong operational performance was reflected in our financial results whereby we increased Net Revenue by 17%, and our Underlying EBITDA increased approximately 26%, delivering against our previously stated guided range. Looking forward, our efforts during the year in registering and commencing carbon abatement across 8 new sites lays important foundations for continued growth. Together with our completed capital raising in October 2025, we look forward to continuing to deliver against our strategy of expanding our pipeline of generation capacity to beyond 80MW.
Broker Morgans said they believed LGI was one of the best ways to get exposure to the decarbonisation thematic on the ASX.
They said:
Despite more modest expectations for FY27, we remain positive over the medium term given the material development pipeline ahead and strong operating leverage across the portfolio as the group scales and executes its meaningful battery rollout across new and existing sites.
Morgans has a price target on LGI of $3.60 compared to $2.38 currently.
Hansen Technologies Ltd (ASX: HSN)
UBS said in its full-year report that Hansen delivered softer-than-expected revenue of 4%, but good margins meant it hit targets for cash EBITDA.
Underlying net profit was strong, coming in 22.5% higher than the previous corresponding period at $48.5 million.
Hansen Chief Executive Officer Andrew Hansen said regarding the result:
FY26 demonstrated the resilience of Hansen's business model. In a more cautious environment, we have remained focused on disciplined execution, protecting earnings quality while continuing to invest for long-term growth. What we have seen during the year, with regards to revenue, is primarily caused by mix and foreign exchange. We continue to have a solid pipeline of demand for our products and services. Our recurring revenue base continues to improve, providing stability and visibility through the cycle. AI is increasingly driving productivity, operating leverage and long-term margin expansion.
The company said AI had been a large focus, and an AI enablement team had been set up to drive capability across the workforce.
UBS said they saw FY27 as a "transition year" for the company, but still have a bullish price target of $5.95 on the shares, compared to $3.31 currently.
