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Highlights

  • Shaw and Partners reiterates BUY rating with a price target of AUD 7.30, implying a 31.29% upside.

  • Moelis Australia Securities also maintains a BUY with a target of AUD 6.60, a 18.71% premium over the current price.

  • Hansen lifts FY25 Underlying EBITDA guidance by up to 22% on operational efficiency and PowerCloud turnaround.

Hansen Technologies Ltd (ASX:HSN), a leading provider of software for the energy, utilities, communications, and media sectors, is drawing renewed investor attention after revising its FY25 profit guidance upwards. The company’s improved earnings outlook, bolstered by strategic wins and successful integration of acquisitions, has prompted multiple brokerages to issue or reaffirm BUY ratings with notable upside potential.

Among the disclosed recommendations, Shaw and Partners’ Jules Cooper reiterated a BUY rating with a price target of AUD 7.30, indicating a potential 31.29% gain from the current trading level of AUD 5.615 (as of 16 July 2025). Likewise, Sinclair Currie at Moelis Australia Securities maintains a BUY recommendation with a target of AUD 6.60, reflecting an 18.71% upside.

The average target price across visible analyst estimates stands at AUD 6.73, representing a 19.86% increase over the current market price.

Upbeat FY25 Guidance Underpins Bullish Sentiment

In its latest update on 14 July 2025, Hansen Technologies significantly raised its FY25 EBITDA guidance following a stronger-than-anticipated financial performance. The company now expects:

  • Underlying EBITDA of AUD 110–112 million, up from a prior range of AUD 92–101 million.

  • Cash EBITDA of AUD 92–94 million, compared to previous guidance of AUD 76–85 million.

This marks a 19–21% increase in Underlying EBITDA and a 20–22% lift in Cash EBITDA over FY24, indicating Hansen’s growing profitability.

The upgrade stems from faster-than-expected turnaround of its PowerCloud acquisition, which has returned to profitability.

Despite a slight revenue adjustment due to customer-driven project timing, the company still forecasts 11% revenue growth in FY25, or 5% excluding the impact of PowerCloud.

Contract Wins Support Growth Narrative

Hansen also highlighted a series of strategic customer wins across global markets:

  • A four-year contract with Vattenfall to implement its CIS platform in Finland (TCV: AUD 5.5 million).

  • A $50 million five-year deal with VMO2, a JV between Telefónica and Liberty Global.

  • A five-year U.S. renewable energy contract valued at AUD 16 million.

  • New deployments across Scandinavia and The Netherlands through clients like Aneo, Modity, World Kinect, and Ingrid Capacity.

These wins not only boost Hansen’s recurring revenue but also reflect the growing global demand for its specialised software products across energy and communications verticals.

The market reaction has been cautiously optimistic, with Hansen shares up nearly 1% on 16 July, closing at AUD 5.615.