These two very different companies have brokers excited, with Macquarie and Morgans recently releasing research notes with bullish share prices on each.
Let's see who they like
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Alpha HPA Ltd (ASX: A4N)
Alpha HPA is commercialising a process to manufacture ultra-high purity aluminium for use in high-tech applications.
Stage one of the company's operations has been operational since late 2022, with the output being used for customer qualification, product validation and process optimisation.
A second stage is under construction, with first production expected for late 2027, and annual production targeted at 10,000 tonnes per year.
The company said in its recent annual report:
Using its proprietary Smart SX Technology, Alpha HPA has pioneered the world's first application of solvent extraction to aluminium purification, enabling the production of a growing portfolio of ultra-high purity alumina, aluminium nitrate, aluminium hydroxide and synthetic sapphire material. The Company's products are supplied to global markets including advanced semiconductors, Direct Lithium Extraction (DLE), lithium-ion batteries, pharmaceutical, LED lighting and synthetic sapphire, where exceptional purity and performance are critical.
Macquarie said in its research note that the company's net loss of $42.7 million for FY26 was ahead of their estimates due to better stage one operating performance and higher grant income.
The broker said data centre construction was driving HPA demand in the semiconductor sector, and Alpha HPA was well-placed to take advantage of this.
Macquarie added:
Alpha is a compelling opportunity for long-term investors giving exposure to the AI theme along with attractive financial metrics at full ramp-up.
The broker has a share price target of $1 on Alpha HPA shares compared to 59.5 cents currently.
ReadyTech Holdings Ltd (ASX: RDY)
This company is a software as a service provider of cloud and AI software used in the education, workforce, government and justice sectors.
The company reported full year revenue of $125 million, at the lower end of revised guidance of $125-$127 million, with underlying EBITDA coming in at $35 million.
The company's Chief Executive Officer Marc Washbourne said of the result:
FY26 was a year in which we strengthened the foundations for growth, transformed for an AI world and took decisive action on cost and capital allocation. Our result finished within revised guidance, with cash margin reaching what we believe is a low point. Our flagship products continue to compound. That was offset by elevated churn in parts of the mature portfolio, and enterprise customers where contracts are signed but subscription revenue is yet to commence as implementations progress.
The company is guiding to improved revenue of $128-$132 million this financial year.
Broker Morgans said the company was well-placed with its investment cycle having largely peaked.
They added:
Despite having seen more protracted implementation/sales cycles and churn in recent times, we still see RDY in a solid position to deliver growth over coming years as customers seek to modernise their enterprise software and convert from legacy systems. We have a speculative buy rating on the stock.
Morgans has a price target of $2.25 on ReadyTech compared to $1.51 currently.
