Brokers have released new research reports on three very different companies this week, but the common thread is a forecast of solid share price appreciation.
Let's see who the brokers like.
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Alliance Aviation Services Ltd (ASX: AQZ)
Morgans has belatedly run the ruler over Alliance's FY26 results and has increased their price target on the company as a result.
The broker said the company achieved its FY26 guidance despite a mixed set of numbers, including second-half revenue coming in $19 million below their expectations.
This was due to weaker-than-expected wet lease revenue, partially offset by a strong performance from contracts, with contract revenue 9% ahead of Morgans' estimates.
Looking forward, Alliance has resigned its largest wet lease contract, securing more favourable terms.
Morgans said:
While the fleet commitment reduces from 30 to 23 aircraft through FY27, AQZ expects materially improved profitability, margins and cash generation from the revised contract.
The broker said the company's strategic reset had "materially improved the investment case".
They added:
The renegotiation of its largest wet lease contract, fleet transition and renewed focus on balance sheet repair provide a clearer pathway to improved profitability, cash flow generation and deleveraging over the next 12-24 months. That said, FY27 remains a critical execution year. Delivery of margin guidance, restructuring benefits, fleet optimisation initiatives and leverage targets will be key to rebuilding investor confidence and supporting share price appreciation.
Morgans has a price target of 85 cents on Alliance shares compared to 51 cents at the time of writing.
Premier Investments Ltd (ASX: PMV)
Premier recently reported its full-year results, with revenue slipping 2.8% to $808 million and net profit falling 10.3%.
The retailer maintained a strong dividend payout, however, and said the start to FY27 had been steady with sales within 1% of the same period the previous year.
Macquarie analysts said in a new research note on the company that the result was in line with recently lowered profit guidance and that sales were broadly in line with their expectations.
The analysts said they were positive about Smiggle repositioning itself in the market to focus on older tweens and said the Peter Alexander store rollout program was strong.
Macquarie has a price target of $15.70 for Premier shares, compared with $11.82 at the time of writing.
Minerals 260 Ltd (ASX: MI6)
Macquarie said in its research note on Minerals 260 that the company's Bullabulling Gold Project was the third-largest undeveloped project in Australia and the only large-scale, long-life asset not owned by a producer.
Macquarie added:
MI6 currently trades on an Enterprise Value to Resource ounce of $321/oz, a 31%/41% discount to ASX listed gold developers/ producers. We see scope for the stock to re-rate as the project is de-risked through FID, construction, commissioning and steady state production.
Macquarie has a price target of $1.30 on Minerals 260 shares compared to 85 cents at the time of writing.
