Imdex (ASX:IMD) is trading bullishly after West Asian conflicts created a buying opportunity due to weakness in resource prices, especially gold, Jefferies said in a note on Tuesday.

The investment firm said that, assuming the war ends soon and energy prices stabilize, it maintains a positive outlook for exploration.

It expects strong years for Imdex, supported by junior resource firms likely to deploy $25 billion across fiscal 2027 and 2028. The company also continues to expand its wallet share and benefit from long-term trends in mining.

Jefferies upgraded the stock to buy from hold while keeping the price target at AU$4.25.