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

Macquarie rates HMC as Outperform

HMC Capital's FY26 pre-tax EPS of 40.4c was in line with guidance and 5% above Macquarie's forecast, despite falling -28% y/y.

FY27 underlying EPS guidance of more than 35c, up 16% y/y, came in well ahead of the analyst's prior expectations, underpinned by more than 30% growth in recurring funds management revenue and around 35% growth in co-investment distributions.

Digital Infrastructure and Private Credit are expected to be the key earnings accelerators, with $18.6bn in AUM and more than $5bn of opportunities across the group.

FY27-FY29 EPS forecasts are upgraded by 50%, 33% and 29%, respectively, driven by higher funds management EBITDA, lower corporate costs and the removal of tax expense due to carried-forward losses.

The target price rises to $4.30 from $3.77. Outperform rating retained.

Citi rates LOV as Buy

In the wake of Lovisa Holdings' FY26 result, Citi retains its Buy rating and raises its target by 20c to $32.20.

First Take: Lovisa Holdings' FY26 profit of $95.6m beat consensus by 10%, driven by improved cost management and lower depreciation and amortisation, Citi explains. The 33c final dividend also comfortably beat the 26c consensus forecast.

Gross margin increased to 82.6%, while inventory fell -12.8% despite sales growth of 17.6%, the broker observes.

International growth remained strong, commentary suggests, particularly across Europe and the Americas.

FY27 comparable sales are up 3% after eight weeks, ahead of Citi's expectation.

Citi believes international store expansion and strong margins support ongoing double-digit earnings growth.

Post conference call with management, Citi analysts report it does appear Lovisa Holdings still has many more years of growth ahead as further store rollouts continue on ongoing favourable economics.

Commentary highlights accelerating sales trends through August and management remains confident about the outlook for FY27.

Morgan Stanley rates WTC as Overweight

Morgan Stanley considers WiseTech Global's FY26 results and outlook as in-line. Commentary acknowledges revenue growth was lower, but cost-out was better and management has made the pathway back to 50%-plus EBITDA margins clear.

Other positives include strong free cash flow and deleveraging is underway.

Morgan Stanley concludes the FY26 results have de-risked the story. The missing ingredient is a return to high revenue growth.

Overweight. Sector view Attractive. Target $70.