Azzet reports on three stocks with price moving updates today.
Premier Investments tanks on negative trading update ~
Shares in Premier Investments (ASX: PMV) were trading 12.6% lower by 2:20 pm AEDT (3:20 am GMT) at $15.80 after the operator of specialty retail fashion chains announced a major 12-month on-market share buyback following the completion of its Apparel Brands sale to Myer.
While today’s news of a $100 million share buyback should have given investors confidence in the group’s strong capital position - to support sustainable growth and seize potential future opportunities – the early morning selloff suggests the market had other issues on its mind.
Despite the group’s clean inventory position at the start of FY26, the market appears to have been spooked by the revelations that the Peter Alexander and Smiggle owner expects poor trading conditions in the UK and weak brand performance in Australia for Smiggle.
With declining discretionary spending underpinning consumer caution, amid an uncertain economic outlook, the group has guided to 1H FY26 underlying earnings of $120 million, which is around 15% below consensus.
This represents a decline of around 7.3% on the $129.4 million the group recorded for the first half of FY25.
Despite record sales at Peter Alexander during Black Friday and Cyber Monday, analysts were quick to flag the possible impact from cost-of-living pressures.
Putting a brave face on today’s update, the company's chair, Solomon Lew, told the market that despite a challenging global environment, the Black Friday trading week provided encouraging early signs ahead of the all-important Christmas, Boxing Day and back-to-school trading periods.
“… we do not underestimate the significance of the December/January trading period ahead which is a critical driver for the Group's first half result. The Group is well prepared for this important trading period ahead,” Lew said.
Lew also told investors that the Myer deal - which boosted its capital position - allowed for the buyback while maintaining a strong balance sheet to support future growth initiatives.
Meanwhile, the $100 million buyback appears unlikely to materially impact earnings, with analysts estimating only 3.6% EPS accretion, while the company’s $333 million cash position and zero debt provide significant financial flexibility.
At FY25, the group reported a statutory net profit after tax of $338.2 million, up 31.1% on last year.
For FY25, the continuing operations of Premier Retail – consisting of Peter Alexander and Smiggle – contributed underlying earnings of $195.4 million, with an EBIT margin of 24.1%, while global sales for the year were $812.2 million, up 0.9% on the previous year.
Peter Alexander continued its year-on-year standout performance, with record full year sales of $548.0 million, up 7.7% on the prior year.
During FY25, Peter Alexander opened its first three stores and an online channel in the United Kingdom.
During FY25, Premier also continued to provide operational support to the now Myer-owned Apparel Brands business under a Transitional Services Agreement.
Premier Investments has a market cap of $2.5 billion; the share price is down 43% in one year and down 13% in the last week.
The stock’s shares appear to be weak with little demand from investors.
The 200-day moving average is downward sloping and the recent price action has also been weak.
Consensus is Moderate Buy.
NextDC leaps on deal with OpenAI
Shares in NextDC (ASX: NXT) were trading around 4.1% higher to $13.99 after the data centre provider told the market it had agreed on a deal with OpenAI to develop a sovereign artificial intelligence infrastructure partnership.
Through the memorandum of understanding, OpenAI and NextDC will work together on the planning, development and operation of a next-generation hyperscale AI campus and large-scale GPU super cluster.
The agreement will see OpenAI become the anchor tenant at NextDC’s $7 billion S7 site data centre in Eastern Creek, Sydney, which, with the 650 megawatts, is set to become the largest in the southern hemisphere.
Management told the market today that the planned data centre in Sydney will boost AI operations for major clients like Commonwealth Bank and Atlassian, cementing Australia's position as a leader in AI innovation.
Commenting on today’s update, OpenAI's management told the market that Australia is well-placed to be a global leader in AI, with deep technical talent, strong institutions and a clear ambition to use new technology to lift productivity.
“We are creating a physical presence here in multiple ways and these are intended to be multiple-year partnerships where we build together,” OpenAI's management said.
“This is really about just the beginning. Our hope is that this sends a pretty clear signal to the Australian market that there is more to be built to enable more economic activity.”
In response to today’s market update, both Citi and Morgans were quick to flag significant upside potential for NextDC shares.
Citi reaffirmed its Buy rating and $18.35 price target, while Morgans upgraded NextDC's shares to a Buy rating with a $19.00 price target.
“The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to Buy from Accumulate," said Morgans.
Today’s update follows recent revelations that NextDC is building a next-generation, AI-ready data centre in central Tokyo (TK1 Tokyo), with targeted completion in late 2030.
NextDC CEO and managing director, Craig Scroggie, believes the project represents an important milestone in the company’s international expansion strategy.
While NextDC is up around 7% today, the stock is still trading around 20% lower than its all-time high of $17.99 on 18 September 2025.
NextDC has a market cap of $9.1 billion; the share price is down 11% in one year and up 4% in the last week.
NextDC sentiment among investors has been weak, resulting in a bearish-sloping 200-day moving average.
More recently, the stock has fallen dramatically enough to register in the oversold region of the Stochastic Oscillator.
Consensus is Strong Buy.
Rio Tinto falls on disappointing guidance
A brave new sweeping strategy of cost-cutting and portfolio pruning announced by recently appointed Rio Tinto (ASX: RIO) boss, Simon Trott, did little to ignite the market this morning, with the stock down over 1.6% in afternoon trading.
At the group’s Capital Markets Day update today, Trott trotted out a three-pronged blueprint for giving the big miner its most significant overhaul in 30 years.
Much of Trott’s strategy focus is centred around the miner's three primary product groups – iron ore, copper and aluminium-lithium – greater discipline around its mining operations and a streamlining of management structures.
Despite plans to opportunistically release up to $10 billion from its asset base - leveraging its strengths to enhance value, efficiency, and return potential – the market today has chosen to fixate on near-term FY26 production guidance, which came in 3% below consensus, likely prompting downward revisions to short-term estimates.
The market appears unwilling to factor in any upside to Rio’s cost-cutting targets, especially the 4% per year unit cost reduction, which analysts say could deliver a significant boost to 2030 consensus earnings if fully achieved.
Rio is projecting potential earnings 40–50% above 2024 levels at long-term prices.
Within today’s market update, Trott told the market that the miner is aiming to release cash where third-party funding is lower than the cost of capital.
This includes exploring commercial, partnership, and ownership options across land, infrastructure, mining, and processing assets.
“We are delivering strong early productivity benefits and cost savings with more to come,” he said.
"Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline.”
Rio Tinto has a market cap of $50.9 billion; the share price is up 13% in one year and up 6% in the last month.
The stock is in a strong bullish trend, confirmed by multiple indicators.
Specifically, a 5-day moving average of the stock price is above the 50-day moving average.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
