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

Bell Potter rates CYL as Buy

Catalyst Metals' FY26 underlying earnings (EBITDA) of $352m came in -5% below Bell Potter's forecast.

Production of 103.8koz was within guidance and costs (AISC) of -$2,738/oz were better than the revised guidance range, the analysts note.

The broker highlights a strengthening balance sheet, with $306m of cash, no debt and total liquidity of $531m following an increase in its revolving credit facility.

Bell Potter's attention now turns to FY27 guidance and an updated 10-year plan expected in late September.

FY27-FY29 EPS forecasts are lowered by -8% to -10%, and the target falls to $12.80 from $13.25. Buy rating retained.

Macquarie rates GNC as Outperform

ABARES has raised the estimate for winter east coast crop production by 12% to 26.6mt, which Macquarie assesses is around 7.5% above the 10-year average.

The broker observes that, after a challenging couple of years, conditions appear set to improve into FY27 and ongoing tensions in the Black Sea region support wheat prices and GrainCorp's export business. The impact of El Nino conditions remains the key unknown.

Volumes remain an important driver for the business and as confidence in the 2026/27 crop increases so too does the broker's expectation of benefits from the improved global margin opportunity.

Target is raised to $7.10 from $6.10 and an Outperform rating is maintained.

Citi rates REA as Downgrade to Neutral from Buy

Citi downgrades REA Group to Neutral from Buy with a message that it is "difficult to fight the cycle" even though the analyst notes listings are holding up better than expected.

Rate hikes, however, remain a risk for 2Q, albeit management has indicated FY27 listings guidance of down "flat to low single-digit". The broker views this as optimistic with the possibility of a 25bps hike at the September meeting and another possibility in November.

REA is also viewed as having some optionality in terms of its cost base and Citi sees possible upside to group margins from lower cost growth.

Target price rises to $191.30 from $183.30 resulting from a 4% earnings upgrade.