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

Bell Potter rates ARX as Buy

Aroa Biosurgery has completed its control trial of Symphony in diabetic foot ulcers with preliminary results indicating the primary endpoint was met.

Bell Potter notes the full dataset is due in the third quarter of FY27, while this read-out provides important clinical validation ahead of the commercial launch of the product.

The second half of 2026 should provide further clarity on reimbursement. No changes are made to the Buy rating and target of $1.09.

Macquarie rates ORG as Neutral

Macquarie anticipates the rise of over-supply and batteries are overtaking the day-to-day working of gas plants.

The full impact is expected from FY28 when an "earnings cliff" for power markets is flagged. Origin Energy is expected to move from over-earnings in power by around $43MWh to being in the middle of its range of $25MWh-$40MWh.

Post the government intervention, the domestic gas market is also under pressure, and markets are somewhat oversupplied leading to weaker pricing.

EPS forecasts are downgraded by -7.1% for FY27, -25.3% for FY28 and -34.3% for FY29. Target price declines to $10.16 from $11.25, previously.

No change to Neutral rating.

Citi rates QBE as Downgrade to Neutral from Buy

Citi raises its earnings forecasts for QBE Insurance by 4% for FY26, 2% for FY27 and 1% for FY28 after updating investment yields, foreign exchange assumptions and mark-to-market movements.

The broker expects catastrophe claims to remain within guidance, crop insurance conditions to stay supportive and investment income to benefit from higher bond yields.

While commercial insurance pricing continues to soften, it's thought rate adequacy remains favourable.

Citi believes QBE's valuation re-rating may continue but downgrades to Neutral from Buy after lifting its target to $27.20 from $23.70.