OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Bell Potter rates IPG as Buy

Bell Potter restates the key cyclical forces that are generating growth for IPD Group. Commercial and data centre markets represent around 48% of revenue, with building approval values in commercial having improved since February. Data centre building approvals have also seen a big gain in momentum in the recent June quarter.

At circa 35% of revenue, industrial and infrastructure are also showing positive trends. Industrial building approval values are up 21% in June on a year earlier, following four months of declines since Nov 2024. Activity levels in water and waste remain strong, up 32% in terms of work done in the March quarter.

A rise in electrical components in the June quarter compared with the prior one infers an inflection point and a positive sign for component demand. Buy rating reiterated. Target rises to $4.30 from $4.10. The stock is viewed as "undervalued".

Shaw and Partners rates LM8 as Buy, High Risk

Metallurgical test work at Lunnon Metals' Lady Herial ore at St Ives Gold Plant showed excellent gold recovery rate of 94.6%, with a coarse gold component.

Shaw and Partners notes the result is line with the June scoping study, and is among the final steps before ore purchase agreement is completed with Gold Fields. This will mean a transition to cash flow generation.

Buy, High Risk. Target unchanged at 60c.

Citi rates WBC as Sell

Following Westpac's 3Q results, Citi maintains its Sell rating and $28.50 target price.

A summary of the broker's initial research issued yesterday follows.

Citi notes Westpac reported 3Q25 net profit after tax of $1.9bn, which beat both the broker's and consensus expectations by 12% and 14%, respectively, due to better revenue from Treasury & Markets, with costs in line.

Core NIM at 1.85% came in better than anticipated and above Citi's 1.76% estimate.

The analyst notes the market has taken the result well but cautions against assuming the revenue momentum will be maintained into 4Q25.