Australasian Equities

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Australasian Equities

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Speculative

high

Show us the pounds We still expect uranium prices to rise, and Paladin (ASX: PDN) is benefiting. The average price it received for its uranium rose 12% in the quarter. But output at its Namibian mine fell, and costs rose well above the company’s own targets for the financial year to June 2027. To meet those targets, Paladin now needs to produce more uranium in each remaining quarter than it did in either the June or September quarter, at much lower

Telstra

Core

medium

Telstra: The SpaceX news-related sell-off improves the entry point We retain our BUY rating on Telstra (ASX: TLS). The sell-off triggered by SpaceX’s US spectrum purchase has lowered the entry price without changing the outlook for Telstra’s earnings, cash flow or dividends. Telstra is by far Australia’s largest telecommunications company, with mobile accounting for around 61% of group earnings. The shares have fallen almost 5% to $4.64 since SpaceX agreed to buy Grain Management’s US 800 MHz spectrum portfolio, in a

Xero

Speculative

high

US software has rebounded. Xero hasn’t yet, and we think it’s overdue The US-listed iShares Expanded Tech-Software Sector ETF (US: IGV) software stocks have recovered losses from this year’s AI disruption sell-off to trade at levels last seen in late 2025, but Xero (ASX: XRO), and many other Australian-listed stocks, for that matter, have not followed. Xero shares are down ~61% over the past year and at a multi-year low. In our view, the gap is the combination of the

Vicinity Centres

Core

medium

Vicinity Holds Its Ground, With Less Upside Vicinity’s (ASX: VCX) shopping centres are producing higher rental earnings and completed developments should lift FY27 income, but slower retailer sales and higher interest rates limit the case for further share-price appreciation despite a discount to asset backing. Vicinity earns recurring rent from retailers and improves returns through leasing, redevelopment and selective property sales. Its larger destination centres and outlet portfolio help attract tenants, but rental growth ultimately depends on retailers earning enough to support

New Hope Corp

Speculative

high

Cash Recovery Extends Beyond Coal Prices New Hope’s (ASX: NHC) FY26 profit decline obscures an opportunity to earn more cash from its existing mines as Bengalla stabilises, New Acland expands and investment spending eases, with higher coal prices offering further upside. New Hope mines and sells thermal coal through its 80% Bengalla interest and wholly owned New Acland operation. Earnings depend on realised prices, saleable output and mining, royalty and transport costs. FY26 delivered more coal to customers but less profit per

CSL

Core

medium

Backing Early Results With Real Money CSL’s (ASX: CSL) lixudebart partnership adds a potential source of specialist-medicine growth, but the immediate consequence is development spending rather than revenue; its appeal lies in complementing an established business, not replacing the need for that business to perform. CSL sells plasma therapies, vaccines and specialist medicines, with future growth also dependent on developing or acquiring new treatments. The Alentis collaboration expands its kidney and liver pipeline through a drug designed to address both inflammation and

Santos

Speculative

high

Santos Casts a Wider Net for Asian Gas Buyers Santos’ (ASX: STO) new LNG arrangements strengthen its ability to supply Asian customers without matching every additional cargo with new upstream investment, while a larger Papua LNG stake offers production growth at a greater capital commitment. Santos earns cash by producing oil and gas and selling liquefied natural gas, including supplies sourced from other producers. The September announcements expand both sides of that model: proposed Canadian purchases broaden available supply, a prospective POSCO

Mirvac

Core

medium

Mirvac Has the Homes Sold, but Rates Hold the Key Mirvac (ASX: MGR) enters FY27 with stronger recurring income, lower gearing and a substantial residential order book, but higher mortgage rates make settlement conversion and property valuations more important than the FY26 earnings uplift. Mirvac earns recurring rent from offices, industrial assets, retail and rental housing, develops residential and commercial projects, and manages property for third-party investors. Rental income and funds management provide a steadier base than development profits, but development remains

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