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Highlight 

  • Wilsons maintains Overweight rating on Iress with a price target of AUD 10.00, implying a 13.64% upside.

  • The company reported core earnings growth in H1 2025, with underlying EPS up 19% year-on-year.

  • Transformation program completed, balance sheet improved through asset sales and debt reduction.

Iress Limited (ASX:IRE) has received a vote of confidence from leading investment and advisory firm Wilsons, which has reaffirmed its Overweight rating on the financial technology provider. The firm set a price target of AUD 10.00, representing a potential 13.64% upside from the current share price, citing the company’s improving operational momentum and first-half 2025 results.

Analyst Cameron Halkett from Wilsons has reaffirmed in the latest review dated 13 August 2025. 

Financial Performance in 1H25

For the six months ended 30 June 2025, Iress reported Statutory NPAT of AUD 17.3 million, in line with the prior period. While total revenue fell 3.1% to AUD 299.5 million due to the sale of non-core assets, the continuing business revenue rose by 6.8%, driven by improvements in the UK operations and performance from the Global Trading & Market Data segment.

Underlying EPS from continuing operations jumped 19% compared to the previous corresponding period, underscoring the health of Iress’ core business. Adjusted EBITDA came in at AUD 64.4 million, 3.9% lower year-on-year due to the absence of contributions from divested units, but on a continuing basis rose 8.7% to AUD 60.2 million.

Operational and Strategic Updates

The first half of 2025 marked the completion of Iress’ multi-year transformation program, which included the sale of its Superannuation and QuantHouse businesses. Proceeds from these transactions were used to retire debt, reducing the leverage ratio to 0.8x, well below prior levels.

The company is channeling savings into expanding its wealth technology offering, particularly targeting the unadvised market segment. Management also reaffirmed full-year FY25 guidance for Adjusted EBITDA in the range of AUD 127 million to AUD 135 million and UPAT between AUD 65 million and AUD 73 million.

An interim dividend of 11.0 cents per share (50% franked) has been declared, payable on 22 September 2025.

Analyst Confidence

Wilsons’ Overweight rating suggests that, despite macroeconomic challenges and the impact of business divestments, the market may be undervaluing Iress’ growth potential. The price target of AUD 10.00 signals optimism in the company’s capacity to deliver higher shareholder returns.