Bell Potter, a prominent stockbroker, has issued positive buy recommendations for two ASX 300 companies, Imdex Ltd (ASX: IMD) and McMillan Shakespeare Ltd (ASX: MMS), following their recent half-year earnings announcements. Both companies presented their results for the first half of the 2026 financial year (H1 FY26) yesterday, prompting a shift in Bell Potter’s outlook from a ‘hold’ to a ‘buy’ for both entities.
Imdex Ltd (ASX: IMD): A Strong Performance in Mining Technology
Imdex Ltd, an Australian-based global leader in mining equipment and technology, has demonstrated robust growth, with its share price experiencing a significant uplift of 30.7% over the past 12 months. This upward trajectory continued yesterday, with a 2.5% surge in its share price directly attributed to its H1 FY26 results.
For the six months ending 31 December 2025, Imdex reported an impressive financial performance:
- Revenue: A substantial increase of 16% compared to the prior corresponding period (pcp), reaching $247 million.
- Normalised EBITDA: A solid 22% rise on the pcp, hitting $78 million.
- Interim Dividend: The company announced an interim dividend of 1.7 cents per share (cps).
Paul House, Managing Director and Chief Executive Officer of Imdex, expressed his satisfaction with the record H1 FY26 results. He highlighted two key drivers of this success: the company’s unwavering commitment to continuous investment in leading technology throughout the exploration cycle, and its unparalleled global network and dedicated personnel who tirelessly work to deliver customer value. This potent combination, he stated, has once again enabled Imdex to surpass market expectations.
Bell Potter’s analysis of Imdex’s performance was particularly optimistic. The broker noted the encouraging global budgets for gold and copper exploration in FY26 announced to date, which signal a substantial increase in exploration expenditure compared to FY25. Coupled with heightened junior exploration activity driven by the deployment of recently raised equity, Bell Potter anticipates robust demand for Imdex’s products and services, alongside significant operating leverage. Consequently, the broker has revised its share price target upwards to $4.60, a considerable increase from the previous $3.60. This represents a potential upside of 15% from Imdex’s closing price of $4.00 yesterday.
McMillan Shakespeare Ltd (ASX: MMS): Navigating Market Reactions
In contrast to Imdex, McMillan Shakespeare Ltd experienced a market downturn following its half-year results announcement. The company’s share price experienced a decline of over 5%, suggesting that investors may have been less enthused by the reported figures.
McMillan Shakespeare specialises in providing a comprehensive suite of employee benefits. Its service offerings encompass salary packaging, novated leasing, disability plan management and support coordination, asset management, and related financial products.
Despite the market’s initial reaction, the company reported a mixed financial performance for the six months ending 31st December 2025:
- Statutory Net Profit After Tax (NPAT): A 9.7% increase, reaching $49.6 million.
- Underlying Net Profit After Tax and Amortisation (UNPATA): A more modest 1.4% rise to $50.3 million.
- Group Revenue: An 11.2% increase, amounting to $297.4 million.
- Half-Year Dividend: A fully-franked dividend of 62 cents was declared.
Bell Potter’s assessment of McMillan Shakespeare’s results focused on the company’s disciplined cost control measures. The broker believes that these efforts could lead to an EBITDA benefit of up to 8% from non-recurring costs and productivity improvements alone. This optimistic outlook has led Bell Potter to upgrade its recommendation to ‘Buy’, citing the company’s depressed valuation multiple. The broker has also adjusted its earnings per share (EPS) forecasts upwards by 2% for the current year and 0% for the subsequent two years.
The updated price target for McMillan Shakespeare is set at $18.50, a slight reduction from the previous $19.70. Nevertheless, this still indicates a potential upside of approximately 11.4% from yesterday’s closing price.
Bell Potter’s Strategic Shift: A Renewed Confidence in ASX 300
The decision by Bell Potter to upgrade both Imdex and McMillan Shakespeare from a ‘hold’ to a ‘buy’ rating underscores a renewed confidence in their future prospects. For Imdex, the strong operational performance and favourable market conditions in the mining sector are key drivers. For McMillan Shakespeare, the broker’s belief in the company’s ability to manage costs effectively and its attractive valuation appear to be the primary catalysts for the upgrade. Investors will be closely watching to see if these positive analyst recommendations translate into sustained share price growth for both companies in the coming months.
