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Highlights

  • Bell Potter Securities maintains a “Buy” rating with a target price of AUD 4.25.

  • Shaw and Partners issues a “Buy” rating with a target price of AUD 4.60.

  • Canaccord Genuity reiterates a “Buy” rating with a target price of AUD 4.30.

LGI Limited (ASX:LGI) has attracted positive analyst sentiment from major brokerages, likely on the basis of its full-year FY25 results, which showcased growth in revenue, operational output, and expansion of its project pipeline.

Bell Potter Securities – Buy Rating, Target Price AUD 4.25
Bell Potter Securities, represented by analyst Daniel Laing, reaffirmed its “Buy” rating on LGI, citing the company’s FY25 performance and strategic project developments. Bell Potter set a target price of AUD 4.25, representing an upside potential of approximately 8.97% from the previous close.

Shaw and Partners – Buy Rating, Target Price AUD 4.60
Shaw and Partners analyst Abraham Akra maintained a “Buy” recommendation, assigning the highest target among the three brokerages at AUD 4.60, which equates to a 17.95% potential upside. The brokerage highlighted LGI’s operational efficiency, increased generation capacity, and the long-term agreements secured during the year as key supporting factors.

Canaccord Genuity – Buy Rating, Target Price AUD 4.30
Conor O’Prey of Canaccord Genuity also reiterated a “Buy” rating with a target price of AUD 4.30, indicating a 10.26% upside. The firm acknowledged LGI’s progress in expanding its renewable energy portfolio and its efforts to integrate battery storage solutions to complement existing landfill gas-to-energy projects.

FY25 Performance Overview
For the year ended 30 June 2025, LGI reported net revenues of AUD 33.9 million, an increase of 10% compared with FY24. This growth was driven primarily by electricity sales and Australian Carbon Credit Units (ACCUs), which accounted for approximately 83% of total revenue.

The company recorded statutory and underlying EBITDA of AUD 17.4 million, up 14% from the prior year, with an EBITDA margin of 51%. Operational performance reached record highs across multiple metrics, including gas flow (127.7 million cubic metres, up 11%), electricity generation (109 GWh, up 13%), and ACCU creation (493,000 units, up 14%).

During the year, LGI expanded its electricity generation capacity by 43% through the completion of the Canberra (Mugga Lane) upgrade and the commissioning of a new facility at Eastern Creek, Sydney. The company also secured six new contracts, bringing the total to 34 contracted sites, and entered into a long-term agreement with Waste Asset Management Corporation (WAMC) to build, own, and operate a 12MW/24MWh grid-connected battery in Northern Sydney.

Outlook
LGI has guided for FY26 underlying EBITDA growth of between 25% and 30% compared with FY25, contingent on market conditions and project timelines. Key priorities include delivering near-term battery projects, expanding the battery energy storage system (BESS) portfolio, and pursuing new landfill gas management opportunities.