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

Citi rates ALL as Buy

North American gaming revenue remained resilient in May, Citi highlights, with US gross gaming revenue rising around 2.5% year-on-year despite signs of a weakening consumer.

A generally steady performance across key gaming titles from both Aristocrat Leisure and Light & Wonder is noted, supported by a broad pipeline of recently released content.

Most notably, Aristocrat's Monopoly has become the top-performing premium leased title in the market, the analyst observes, with its installed base expanding rapidly.

Citi remains positive on both Aristocrat and Light & Wonder, citing solid operating trends and attractive valuations, and retains Buy ratings on both stocks.

The target for Aristocrat Leisure is $61.00.

Morgans rates IEL as Buy

IDP Education provided better-than-expected cost reductions in its latest update and further reductions are expected in FY27. Morgans assesses the further information underpins its recent upgrade.

The broker is "willing to look through a cyclically depressed valuation" as the business becomes a "leaner" market leader, underpinned  by structural demand and ongoing product development.  FY26 adjusted EBIT is expected to be around $122m, up 2.5%.

While visa restrictions have tightened across all four key destination markets, underlying demand for international study is still supported by Asian demographics, the broker adds. Buy rating. Target is raised to $3.45 from $3.15.

Macquarie rates KAR as Upgrade to Neutral from Underperform

Macquarie upgrades Karoon Energy to Neutral from Underperform post the selloff in the shares after last week's guidance downgrade,

The share price currently infers a oil price of around US$69.6/bbl down from US$74/bbl on June 16, the analyst points out.

Karoon is due to announce its 2Q2026 quarterly update on July 23. Macquarie is forecasting 1.47MMboe production which is some 4.3% above consensus and revenue of US$138.7m, 14% above consensus.

The broker emphasises the energy producer is very sensitive to the oil price with "significant leverage". Karoon remains a 2027 story.

No change to target price of $1.50.