OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Bell Potter rates FLC as Speculative Hold

Under new analyst coverage at Bell Potter, the target for Fluence rises to 11c from 8.5c and the rating remains Speculative Hold.

The broker's investment case is centred on a transition from lower-margin custom-engineered solutions to higher-margin smart product solutions and recurring revenue.

Favourable environmental tailwinds and the company's proprietary membrane aerated biofilm reactor (MABR) technology are seen as supporting these positives.

It's felt the company’s installed base of more than 1,000 systems provides scope for higher-margin recurring revenue through operations, maintenance and aftermarket services.

Fluence’s strategic shift, initiated in 2020, is nearing completion, the broker highlights, with the final legacy Ivory Coast contract due to be completed in 3QFY26.

Citi rates MP1 as Buy

Citi details how a "surge" in demand for GPU rentals, with Latitude's GPUs selling out, as well as the company increasing its prices, is likely to underpin upside risks to Latitude's growth and the broker's annual recurring revenue estimates, and FY27 forecast revenue, all else remaining unchanged.

Hiring activity across both Megaport and Latitude does not infer a rise in hiring over 2H26, which supports the analyst's view that management's FY26 guidance is "conservative". An earnings upgrade is expected next month at a competitor conference.

Job listings for Megaport remain high, which does, however, place upside risk to opex growth forecast of 19% for FY26, Citi states, although this is likely to be offset by more moderate hiring from Latitude.

A Buy rating and $14.65 target unchanged.

Morgans rates SIG as Upgrade to Buy from Accumulate

Morgans upgrades its rating for Sigma Healthcare to Buy from Accumulate, maintaining a $3.36 target, citing recent share price weakness and attractive upside.

Sigma is a leading pharmacy wholesaler and franchisor following its merger with Chemist Warehouse, the broker reiterates, creating a large-scale healthcare platform with strong growth prospects.

The analysts forecast around 20% annual earnings (EBIT) growth over the next few years, driven by like-for-like sales growth, store rollout, international expansion and synergy realisation.

Sigma’s expansion strategy across New Zealand, Ireland and the UAE, alongside private label growth and operating efficiencies, is expected to support margin expansion and ongoing earnings momentum.