---
title: "Iran conflict has created a buying opportunity in this Australian stock: Jefferies"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280600218.md"
description: "Jefferies upgraded Australian mining technology company Imdex to a \"buy\" rating, citing an 18% share price drop due to the Iran War as a buying opportunity. The firm set a 12-month price target of AUD4.25, implying a 27% return from the current price of AUD3.34. Analysts expect revenue growth and improved EBITDA margins, while noting the Iran conflict poses risks to the resources cycle. Junior resource equity raisings reached a record US$17 billion, indicating strong market activity."
datetime: "2026-03-26T09:01:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280600218.md)
  - [en](https://longbridge.com/en/news/280600218.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280600218.md)
generator: "portal-rs"
---

# Iran conflict has created a buying opportunity in this Australian stock: Jefferies

Jefferies upgraded this Australian mining technology company to “buy” from “hold” rating, saying an 18% share price drop triggered by the Iran War had created an entry point into the stock.The brokerage set a 12-month price target of AUD4.25 on Imdex, which was trading at AUD3.34 at the time of the report, implying a 27% return. Forecasts were left unchanged."The Iran War has taken some of the heat out of resources, gold in particular which is down 17% from its Feb highs," analysts said. "On the assumption that the war ends in the near future & energy prices normalise, we continue to view exploration bullishly."At AUD3.34, Imdex trades at 25.3x FY26 estimated earnings and 20x FY27, against a peer group average of 33x and 24x respectively. Peers include Sandvik AB at 29x FY26, Epiroc AB at 31x, and Caterpillar Inc. at 37x.Jefferies projects revenue rising from AUD440.9 million in FY25 to AUD511.4 million in FY26 and AUD591.3 million in FY27. Adjusted net profit is forecast at AUD71 million in FY26 and AUD90 million in FY27, with EBITDA margins expanding from 16.7% in FY25 to 20.4% by FY27.The brokerage values Imdex using an equal blend of discounted cash flow analysis and EV/EBIT, applying a 10% premium to its mining technology peer group. The downside scenario places the stock at AUD3, a 10% decline from current levels.The upgrade comes as junior resource equity raisings hit a trailing 12-month record of US$17 billion to February 2026, up from US$15 billion for full-year 2025. January and February alone totalled US$3.4 billion, up 167% year on year. Jefferies estimates US$25 billion raised by junior miners over the past two years is yet to be substantially deployed, with spending expected through FY27 and FY28.Several peers issued bullish commentary in recent months. Capital Drilling said on March 19 that "mining services poised for unprecedented boom," while Major Drilling said on February 26 that optimism was "driven by a combination of increased financing activity and growing exploration budgets."Jefferies flagged the Iran conflict as "an obvious and unpredictable wild card" for the resources cycle, identifying a sharp contraction in global exploration expenditure as the primary risk to its thesis.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**