Analysts at Bell Potter have identified a positive outlook for shares of GenusPlus Group Ltd (ASX: GNP), suggesting that the stock could experience a rise of approximately 15% over the next 12 months. This assessment comes as the service provider, which focuses on sectors including mining, utilities, and telecommunications, has recently upgraded its earnings guidance for the fiscal year 2026.
Bell Potter attributes this optimistic forecast to an unexpectedly strong performance during the first half of the financial year. The firm noted that GenusPlus has revised its EBITDA growth guidance for FY 2026 to around 35%, an increase from the previous range of 20-25%. This adjustment follows better-than-expected unaudited financial results from its Energy & Engineering and Services segments, while its Infrastructure segment performed in line with expectations.
Investment Potential and Price Target Adjustment
In light of these developments, Bell Potter has reiterated its “buy” rating on GenusPlus, raising its price target from $7.50 to $8.70. With the stock currently priced at $7.57, this presents a potential upside for investors.
The analysts highlight GenusPlus’s strategic positioning in the renewable energy sector, noting that increased investments in energy generation, storage, and transmission infrastructure will likely contribute to significant growth. They project earnings per share growth of 33.9% in FY 2026 and 16.9% in FY 2027.
Bell Potter’s analysts stated, “GNP offers investors concentrated exposure to a long-duration tailwind in rising investment levels for renewable energy generation, storage, and transmission infrastructure.” They emphasized the company’s robust order book, which currently exceeds $2.6 billion in transmission and battery energy storage system projects, affirming the favorable market trends.
Management Confidence and Future Outlook
The management team at GenusPlus has demonstrated a consistent track record of exceeding guidance over the past two years. The early upgrade to the FY 2026 guidance is seen as an encouraging sign of further potential positive surprises.
Bell Potter’s analysts believe that the company’s solid recurring revenue profile enhances visibility for near-term earnings growth. They have confidence in GenusPlus’s capabilities to navigate upcoming market opportunities effectively.
In the broader investment landscape, it is essential for potential investors to consider various factors before committing funds. While GenusPlus shows promise, noted investment expert Scott Phillips from the Motley Fool has identified five other stocks he believes may currently offer stronger investment opportunities.
Investors are advised to conduct thorough research and consider their financial goals before making investment decisions. The insights from Bell Potter paint a compelling picture for GenusPlus, making it a notable stock to watch in the coming months.
