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

UBS rates ANZ as Sell

UBS stress-tests bank asset quality against potential Middle East geopolitical shocks and resulting impacts on the Australian economy via inflation and interest rates.

Growth shocks are unlikely, in the analysts' view, given consumers and businesses have already absorbed 4.25 percentage points of rate increases over four years.

It is thought asset quality could weaken if cost-push inflation drives higher-than-expected rate rises, though current resilience remains supportive.

Credit loss ratio expectations sit below through-the-cycle levels near -10bps, the broker explains, while a return to long-term averages may reduce EPS by around -10%.

For ANZ: target $36.50. Sell rating.

Morgan Stanley rates GMG as Overweight

Morgan Stanley takes a closer look at the company's European data centre developments. From a development perspective, lease agreements materially de-risk the projects and the company is on the verge of achieving this.

The broker assesses this would then prepare the way for up to $2.95bn in development EBITDA to be recognised as early as FY27-29, ahead of construction completion.

Morgan Stanley also points out the company, and its partner in Europe, may not have to fund all capital expenditure, depending on how the data centres are sold to the end users.

Risks still remain from construction costs and timing perspective, the broker acknowledges.

Overweight. Target is reduced to $36.73 from $41.50, with Morgan Stanley pointing out the current share price is giving little credit to the datacentre pipeline. Industry View: In-Line.

Citi rates WTC as Buy

Citi's feedback from the Trans-Pacific Maritime Conference 2026 supports WiseTech Global's durable moat concept.

Product depth in Cargowise is seen as underappreciated, irrespective of Denmark-based global freight forwarding and logistics company DSV uncertainty.

Execution will be critical as AI adoption accelerates, the analysts suggest, while DSV’s potential exit is not viewed as signaling a broader trend.

The broker highlights early-stage industry adoption of agentic AI, positioning Cargowise as a likely enabler given its functionality and scalability advantages.

It's felt product developments, including a June release, could accelerate adoption among large forwarders, though US landside exposure remains a growth headwind.

Buy. Target $65.35.