More balanced R/R after strong run - moving EW

Research evidence excerpt

More balanced R/R after strong run - moving EW

Idea

June 30, 2026 08:00 PM GMT

Morgan Stanley Australia Limited+MRedox Ltd | Asia Pacific Chenny Wang, CFA

Equity Analyst

More balanced R/R after strong Chenny.Wang@morganstanley.comJames Bales +61 2 9770-9227

James.Bales@morganstanley.com +61 2 9770-1603

run - moving EW Edward Xu

Research Associate

What’s Changed Edward.Xu@morganstanley.com +61 2 9770-1181

Redox Ltd (RDX.AX) From To

Rating Overweight Equal-weight

Price Target A$3.50 A$4.00

We really like RDX - strong competitive position, organic +

inorganic growth, strong balance sheet to support optionality Redox Ltd (RDX.AX, RDX AU)

Australia Emerging Companies | Australia

(e.g. offshore, specialty). These are unchanged, but stock price is

Stock Rating Equal-weight

now much higher and traded past our PT. As such, we think R/R Industry View In-Line

Price target A$4.00

is balanced at c.20x+ FY27e P/E and move EW. Up/downside to price target (%) (1)

Shr price, close (Jun 29, 2026) A$4.04

Anticipating a solid result...: We see risk to Street forecasts as upside skewed; 1. 52-Week Range A$4.16-2.07

Sh out, dil, curr (mn) 525

Price inflation - from basically flat prices to inflation in 4Q FY26e, coinciding with Mkt cap, curr (mn) A$2,122

EV, curr (mn) A$2,041

the rises in upstream inputs (e.g. oil prices) post Middle-East conflict; 2. Overall

Avg daily trading value (mn) A$2

stable volumes - in our view, with some customer hesitation on rising prices offset

Fiscal Year Ending 06/25 06/26e 06/27e 06/28e

by other customer demand pull-forward (to get ahead of further price rises /

EPS (A$)** 0.15 0.16 0.17 0.19

potential supply availability concerns). 3. Street margins look achievable - at c.21.6% Prior EPS (A$)** - - - -

Revenue, net (A$ mn) 1,244 1,362 1,491 1,629