ASX materials stock Imdex Ltd (ASX: IMD) is in focus today after another big jump during yesterday's trade.
It is an Australian mining equipment and technology company operating globally.
Its technology includes drilling optimisation products, cloud-connected rock knowledge sensors, and data and analytics to improve the process of identifying and extracting mineral resources.
Yesterday, it rose another 3%, which takes it to a 9% gain over just the last week.
It is now up 28% year to date and 62% over the last year.
Investors monitoring this soaring ASX materials stock may be wondering if there is any upside left.
The team at Bell Potter have provided updated guidance on this rocketing ASX stock.
It seems the broker believes there's still plenty of room to run.
3Q FY26 Business Update
In the recent report, Bell Potter said Imdex's Business Update was headlined by quarterly revenue of $123m (BPe $122m), up 23% YoY (29% CCY), and a bullish outlook.
The company reported:
- Quarterly revenue was $123m, up 23% YoY (BPe $122m; up 29% CCY)
- Sensors, services, and software revenue contribution grew to 70% of Group revenue, up from 68% in 1H FY26, partly reflecting the 33% uplift in tools on hire (vs PcP)
- Regionally, the Americas and APAC led revenue growth at 27% and 28%, respectively, with strong demand for sensors and field services, and minimal impacts from the Middle East conflict noted
Bell Potter said these results helped improve the long-term outlook for this ASX materials stock.
We are encouraged by the significant expansion in CY26 gold and copper Major and Intermediate exploration budgets, suggesting robust uptake of IMD drilling products, tools and software in the shortterm. Together, with greater Junior exploration activity, as a record wave of recently raised equity is increasingly deployed, IMD is well positioned to deliver strong revenue growth and operating leverage over the next twelve months.
Price target increase
Based on this guidance, the team at Bell Potter have increased their share price target to $5.10 (previously $4.60).
From yesterday's closing price of $4.43, this indicates a further upside potential of approximately 15%.
It's worth noting that opinions appear mixed on the further potential for this ASX materials stock.
Based off 10 forecasts from analysts via TradingView, price targets range from a low of $3.60 per share, to highs of $5.15.
Online brokerage platform Selfwealth indicates this ASX materials stock is trading close to fair value.
The post Can this red hot ASX materials stock keep charging higher? appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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