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

Morgans rates BBN as Buy

Baby Bunting's trading update for the first 14 weeks of FY27 largely met Morgans' expectations. Comparable sales growth was 2.2% y/y for the period, with Australian at 2% and NZ up 8.7%.

The slowdown in like-for-like sales growth in weeks 7–14 is 0.6% y/y from 4.3% y/y growth in the first 6 weeks of FY27.

The analyst highlights that the Store of the Future format continues to perform well; 17 stores have been refurbished and are achieving an average 20% sales growth in the first year.

Management reiterated guidance and no changes have been made to earnings forecasts.

Target price unchanged at $1.62. The stock is trading at under 8x FY27 PER, which Morgans views as undervaluing the earnings growth outlook over the next few years. Buy rating retained.

Bell Potter rates EBR as Speculative Buy

EBR Systems has revealed a -13.9% quarter-on-quarter decline in its WiSE unit volume and -3.9% decline in quarterly revenue.

Bell Potter suspects, while the disruption in sales leadership may have contributed, it is also possible there were some inpatient cases that were pushed back until the new (higher) reimbursement commences in October.

2026 unit volume estimates are reduced to 180 from 252. Valuation drops significantly with the target now $0.20 from $0.70. Speculative Buy retained.

Citi rates ZIP as Buy

Citi's analysis of September app data suggests Zip Co ended the quarter strongly, with US app downloads rising 11% year-on-year and monthly active users (MAU) increasing 16%.

The broker forecasts US total transaction value (TTV) growth of 35% to US$2.59bn, supporting a 24% increase in group cash earnings (EBITDA) to $78m. FY27 cash earnings are forecast at $347m, assisted by a weaker Australian dollar.

Despite higher bad debts and funding costs, Citi sees upside to FY27 guidance from cost control and new product launches.

The target rises by 10c to $3.30; Buy rating retained.