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

Bell Potter rates APE as Buy

Bell Potter has lowered its earnings estimates for Eagers Automotive post AGM, the trading update from Peter Warren Automotive ((PWR)), and the VFacts delivery data for May.

Profit before tax forecasts are trimmed by -2% and -3% for 2026 and 2027, respectively, placing the estimates only marginally above consensus, according to the analyst.

The update assumes lower margins for CanadaOne. Regarding EPS forecasts, there is no change to 2026, but downgrades for 2027 and 2028 of -4% and -5%, respectively.

DPS forecasts are also cut until there is more certainty around the payout ratio post CanadaOne. Target price slips to $28.00 from $28.75 with no change to the Buy rating.

Morgans rates CVL as Buy

Morgans observes recent contract awards, including Iluka Resources' Eneabba rare earths refinery project, have lifted Civmec's order book to a record $1.5bn and strengthened earnings visibility.

It's felt the company is entering an earnings upgrade cycle after subdued activity in FY25 and first-half FY26. The broker forecasts FY27 revenue of $1bn, supported by growing exposure to mining, energy, infrastructure and defence projects.

The analyst's earnings forecasts for FY27 and FY28 have been raised following recent wins, while Civmec's strong balance sheet and maintenance growth strategy provide additional support. Morgans retains a Buy rating and lifts its target to $2.30 from $2.00.

Citi rates DXS as Neutral

Dexus has updated further on the matter with APAC as the NSW Supreme Court extends the injunction until June 22.

The REIT has confirmed key executives have been stood down and financial advisers dismissed. Quantifying the potential loss is uncertain at this stage.

Separately, an infrastructure funds review is being undertaken, which contributes around $35m in management fees and represents a meaningful share of total earnings, Citi observes.

The broker assesses the current -40% discount to net tangible assets at which the stock is currently trading at, at least partially reflects the challenges and provides some valuation support at current levels. Neutral rating and $6.50 target.