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

Shaw and Partners rates RMS as Buy

Australian gold miners are poised to deliver strong February results, according to Shaw and Partners, underpinned by record-high gold prices in Australian dollar terms.

The backdrop is further supported by largely clean hedge books, solid operational performance and disciplined cost management across the sector, explain the analysts.

The broker suggests attention will centre on second-half outlook statements for any emerging signs of cost inflation.

For Ramelius Resources, Shaw believes the market underestimates Dalgaranga’s production potential. Also, given management’s conservative forecasting track record, it's thought additional discoveries at Cue or Magnet could drive outperformance.

Buy. Target $6.50.

Macquarie rates TWE as Neutral

Macquarie views the valuation multiple ascribed to Treasury Wine Estates reflects the underlying metrics that generate value for the stock, notably return on invested capital and growth, and both are currently trending down over the analyst's earnings forecast period.

The broker explains customer preference for wine is "waning" in terms of relevance, alongside a loss of purchase frequency.

Moderation rather than outright rejection of alcohol is the trend, with no volume growth for alcohol, so growth will come from value.

Macquarie believes brand building via marketing is essential, with no change to the analyst's earnings forecasts and a Neutral rating, target price of $5.20.

Citi rates XRO as Buy

Citi sees US-based cloud-based accounts payable and receivable automation company Bill Holdings' recent management commentary as supportive for Xero. 

Management at Bill highlighted improving small to medium business (SMB) resilience and a modest uplift in transaction volume per customer.

According to the analyst, Bill’s focus on larger SMBs and recent price increases should further support Melio’s growth, particularly as Xero leverages its US accounting base to cross-sell the embedded solution.

Target $144.80. Buy.