Analysts at Bell Potter have identified GenusPlus Group Ltd (ASX: GNP) as a potentially lucrative investment, suggesting that its shares could rise by as much as 15% over the next year. This assessment is based on the company’s recent performance and revised earnings guidance for the fiscal year 2026.
GenusPlus, a service provider for mining, utilities, and other sectors focusing on electrical plant and equipment as well as telecommunications infrastructure, has seen a strong demand in its Energy & Engineering and Services segments. Bell Potter reports that the company has upgraded its earnings before interest, taxes, depreciation, and amortization (EBITDA) growth guidance for FY 2026 to approximately 35%, a significant increase from the previous estimate of 20-25%. The upgrade is attributed to better-than-expected unaudited financial results from the first half of FY 2026, with the Infrastructure segment meeting company expectations.
Positive Outlook for Shareholders
In light of these developments, Bell Potter has reaffirmed its buy rating for GenusPlus, increasing its price target to $8.70 per share, up from $7.50. Given the current share price of $7.57, this indicates a notable upside potential for investors.
The brokerage firm expresses optimism regarding GenusPlus’s position within the renewable energy sector, highlighting an anticipated increase in spending on renewable energy generation, storage, and transmission infrastructure. Bell Potter forecasts an earnings per share growth of 33.9% for FY 2026 and 16.9% for FY 2027.
Bell Potter analysts commented on the company’s growth potential, stating, “GNP offers investors concentrated exposure to a long-duration tailwind in rising investment levels for renewable energy generation, storage, and transmission infrastructure.” They noted that GenusPlus currently maintains a record order book exceeding $2.6 billion for transmission and battery energy storage system (BESS) projects.
Management’s Track Record and Future Prospects
The analysts also emphasized GenusPlus’s management track record, which has consistently exceeded guidance over the past two years. The early upgrade of FY 2026 guidance is seen as a positive indicator for potential further surprises in earnings.
The new target price of $8.70 per share suggests a forward price-to-earnings growth ratio (PEG) of 1.2x, which the analysts believe is justified given their confidence in the company’s outlook.
Investors considering adding GenusPlus Group shares to their portfolios should weigh this analysis alongside other investment opportunities. Notably, Scott Phillips, a Motley Fool investing expert, recently revealed alternative stock picks that he believes may offer better returns at the moment.
This article contains general investment advice, and readers are encouraged to conduct their own research before making investment decisions.
