Azzet reports on three stocks with price moving updates today.
Monash IVF rallies on revised consortium bid ~
Shares in embattled Monash IVF (ASX: MVF) - severely impacted over the past year by clinical errors, leadership changes, and legal settlements – were trading 14.3% higher by 1:50 pm AEST (3:50 am GMT) after the fertility services provider announced a revised takeover bid this morning.
Despite a difficult year marked by share price declines, the consortium led by Genesis Capital and ASX-giant Washington H Soul Pattinson has seen sufficient value in the business to stump up with a revised A$351 million, 90¢-a-share non-binding takeover proposal, up from the previously rejected 80¢ offer.
Today’s offer by the consortium – which already holds around 19.6% of Monash IVF - valid until 21 April, is subject to four weeks of exclusive due diligence with no fiduciary exceptions, board recommendation and final approvals from the bidders.
The consortium’s latest offer follows a disappointing 1H FY26 result - with the share price falling 7% - underpinned by a 1.8% fall in group revenue to $137.9 million due to softness and domestic IVF market-share loss.
The company's underlying EBITDA dropped 15.3% to $30.2 million, and its underlying EBIT declined 27.5% to $17.5 million.
Underlying net profit of $10.4 million was down 34% for the first half of the financial year, aligning with previous guidance.
Looking ahead, Monash IVF told the market to expect an underlying net profit of around $20 million for FY26.
It’s not immediately clear why the consortium chose to up its original offer, but it clearly envisages the group regaining market share, with recently installed new management wanting to put two recent in-vitro fertilisation bungles behind it.
After Monash IVF rejected the original offer as “opportunistic”, Soul Patts and Genesis made it clear the new price was the highest they were prepared to offer, in the absence of a rival offer emerging.
Monash IVF’s shares shed half their value between April and November last year following the revelations that the most pedestrian of human errors had been discovered, not only once but twice.
The first incident saw a patient at its Brisbane clinic unknowingly give birth to somebody else’s baby after an embryo from a different patient was mistakenly transferred to her.
A second incident at the company’s Melbourne clinic was disclosed in June, after a patient’s own embryo was transferred back to her when the plan specified that she should have received an embryo from her partner instead.
Today’s revised offer follows the decision by Monash IVF last month to pay financial settlements to families involved in two major bungles that saw two women transferred the wrong embryo.
Monash IVF has a market cap of $301 million; the share price is up 12% in one year and up 22% in the last month.
The stock’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
A2 Milk dives on lower profit outlook
Shares in the dual-listed A2 Milk Company (ASX: A2M) were trading 12.9% lower after the infant formula company told the market to expect lower profit than originally projected, citing supply chain disruptions in China.
Management admitted to the market that while demand for its products remains strong, product availability issues in China and the cost of additional air freight – especially for its China label infant milk formula (IMF) products – have forced the company to downgrade its FY26 outlook.
As a result, EBITDA margins have been cut to 14% to 14.5% from 15.5% to 16%, with revenue growth now tipped at low- to mid-double-digit per cent, with cash receipts also delayed into 2026-27 due to supply constraints late in the year.
Net profit after tax is now expected to be devoid of growth and come in similar to or lower than in FY25, when it reported continuing operations revenue of NZ$1.76 billion and profit of NZ$203 million.
Cash conversion is also expected to fall significantly to around 50%, down from prior expectations of 80%.
Due to Iran war-related freight disruptions, the company noted that strong demand for its infant milk formula, especially its Chinese label, was outstripping supply, and flagged worsening of supply shortages through April and May.
Supply shortages appear to be undermining a spike in 3Q demand, with positive year-to-date offtake trends similar to or better than those experienced in 1H.
Given that the impacts are largely timing-related, management warned the market it is too late in the financial year to offset the hit, with cash receipts also slipping into 2026-27.
“While the supply chain impacts are primarily timing-related and one-off in nature, their cumulative effect is now expected to impact the Company's performance against FY26 guidance, noting their potential impacts are challenging to mitigate at this stage in the financial year due to proximity to year end and end-to-end supply chain lead times,” the company said.
“Notwithstanding these short term challenges, the Company intends to continue to reinvest in the business in 4Q26 to support brand health, growth and long term value creation.”
The A2 Milk Company has a market cap of $5.6 billion; the share price is down 6% in one year and down18% in the last month.
The stock appears to be in a long-term uptrend because its 200-day moving average is upwards sloping and shows that there has been overall investor demand for the stock.
Consensus is Hold.
Cue Energy rallies on major gas sales agreement
Shares in Cue Energy Resources (ASX: CUE) were trading 3.6% higher after the Melbourne-based oil and gas small cap told the market it had secured a binding multi-year gas sales agreement with the NT Government, which underpins the Final Investment Decision (FID) to drill two new wells in the Palm Valley field.
Replacing a previous non-binding framework tied to the Mereenie field, the deal will see up to 3.2 petajoules of gas supplied from its Palm Valley interest through to the end of FY34 on a fixed-price, CPI-linked, take-or-pay basis and providing long-term revenue certainty.
The Palm Valley permit OL3 participants include Central Petroleum (NT) Pty Ltd (Operator, 50%), Echelon Palm Valley Pty Ltd (35%) and Cue Palm Valley Pty Ltd (15%).
Today’s update is expected to significantly lift Cue’s contracted gas position, provide long-term pricing certainty and underpin investment in new Palm Valley production.
Key approvals are either in place or underway, long-lead items have been ordered, a drilling rig is contracted, and civil works are substantially complete.
Management is now targeting first drilling mid-year and progressive production from 2H FY26, with up to 21 petajoules of gas to be delivered on a firm basis.
Commenting on today’s update, Cue Energy’s CEO, Matthew Boyall, told investors that this agreement also adds long-term contracted cash flow and underwrites investment in the two new wells and increased production at Palm Valley, strengthening Cue’s forward revenue profile.
“It has taken time to get the settings right, but we now have a significant GSA for the Palm Valley Joint Venture. Importantly, it underwrites an investment in two Palm Valley appraisal wells on an accelerated basis,” said Boyall within one of four separate ASX announcements today.
“If the two wells are successfully delivered as planned, sales under the GSA will generate strong returns and increase free cash flows from later this year. Combined with our exploration activity in both the Cooper Basin (targeting oil and gas) and the Otway Basin (targeting gas), also planned in FY2027, we are positioned with several exciting near-term growth opportunities.”
Beyond the Palm Valley joint venture, Cue’s portfolio includes interests in the Mahato and Sampang PSCs in Indonesia, the Mereenie, Dingo fields in the NT, and the Maari field in NZ.
Cue Energy Resources has a market cap of $104 million; the share price is up 56% in one year and up 3.4% in the last month.
The stock appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
