L1 Group raises merger synergies as Canaccord covers L1 Group stock

L1 Group (AU0000423501) raised its merger cost-synergy target from AUD 35 million to AUD 43 million in October 2026, while Canaccord initiated coverage with a Buy rating and an AUD 1.41 price target on September 21, 2026. The analyst action was reported by The Bull, and the synergy update was covered by The Motley Fool Australia.

Three milestones since August

Ground News reported that L1 Group's underlying net profit after tax reached AUD 188.8 million for the year ended June 30, 2026, up from AUD 96.1 million on a pro forma basis, a 97 percent increase that included a one-off fee. Underlying EBITDA reached AUD 287.4 million, up 102 percent.

On September 21, 2026, The Bull said Canaccord had initiated coverage with a Buy rating and an AUD 1.41 target. On October 6, 2026, The Motley Fool Australia reported that the company had lifted its targeted merger synergies from AUD 35 million to AUD 43 million.

What supports the merger case?

The earnings comparison is the clearest evidence so far. Underlying net profit after tax nearly doubled on a pro forma comparison, while underlying EBITDA more than doubled, showing how performance fees and the enlarged asset-management platform affected fiscal 2026 results.

The figures also require careful classification. The AUD 188.8 million amount is underlying net profit after tax, not the same measure as the AUD 540.5 million net income figure cited for fiscal 2026 by The Bull. That distinction matters because the merger and one-off items can materially affect statutory results.

Stock context after the results

ASX data placed L1 Group's market capitalization at AUD 3.0 billion on October 12, 2026, with a 52-week range of AUD 0.93 to AUD 1.37. The Canaccord target of AUD 1.41 therefore sits above that reported range, while the investment case remains exposed to market levels, funds under management and performance-fee volatility.

The last Lang & Schwarz indication was EUR 0.75 on October 12, 2026 at 11:00 p.m. CEST. The further course of trading is shown by the continuously updated real-time quote of L1 Group stock.

Market context: Market report S&P ASX 200.

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