Morgans previously believed the risk was skewed to the downside for Imdex's FY25 forecasts but changed its view following solid 1H result and material forex tailwinds to start 2H. This, together with a capitalisation of certain R&D costs, makes FY25 forecasts look more achievable and shifts focus to FY26, the broker highlights.

Based on the trend established in junior miner raisings, the broker is now confident volumes will improve from FY26 onwards. As a result, the analyst lifted FY26 EBITDA and net profit forecasts by 2% and 4% respectively.

Target price rises to $3.2 from $2.4. Add rating maintained.

Sector: Materials.

Target price is $3.20.Current Price is $2.85. Difference: $0.35 - (brackets indicate current price is over target). If IMD meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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