Company Interview / Milking modest upgrades

Adam Dawes from Shaw and Partners highlights the Australian government’s upcoming legislation introducing tax incentives for renewable hydrogen and critical minerals, aiming to boost investment in the energy transition. The incentives apply from 2027 for a decade.

Adam sees another market record, driven by financials and banks, despite the resources sector lagging. Paladin Energy (ASX:PDN) has downgraded its uranium production outlook, leading to a stock fall; yet there’s optimism as they've begun processing stockpiles. Adam’s bullish on uranium.

Discussing A2 Milk (ASX:A2M), Adam notes an AGM trading update shows improved earnings and modest valuation. Neuren Pharmaceuticals (ASX:NEU) is also highlighted as a promising stock despite recent downgrades. He stresses the importance of cautious optimism amid regulatory uncertainty.