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

Bell Potter rates APE as Buy

Eagers Automotive announced the completion of its investment in CanadaOne Auto effective April 30 with the founder Pat Priestner exercising his option to acquire a 5% interest in easyatuo123, Bell Potter observes.

Due to the one month deferral in completion, the analyst lowers revenue and profit before tax forecasts for 2026 by -3% with no change in estimates for Australia or Canada.

With a roll forward of the PER and EV/EBITDA valuations for a 2027 base year, the target price rises to $29.25 from $28.50.

Buy rating is maintained.

Bell Potter rates COL as Downgrade to Hold from Buy

Bell Potter downgrades Coles Group to Hold from Buy with a higher target of $22.80 from $22.35 post 3Q26 update which saw revenues grow by 3.1% y/y due to 4% annual growth in supermarkets.

Liquor fell -3.9% y/y including the closure of 13 net stores over the period. Ecommerce sales advanced 1.8% over the year and represented 7.3% of sales.

Management offers no formal guidance observing price increase requests are rising from suppliers due to higher fuel, freight and packaging costs. Liquor sales are being affected by weaker consumer confidence.

EPS forecasts slip by -3% for FY26 and -2% for FY27. The downgrade reflects a rising competitive macro backdrop and a more "compelling growth at a reasonable price" opportunity in other consumer staple stocks.

Citi rates SIG as Neutral

Sigma Healthcare's trading update showed strong momentum, Citi believes. Australian Chemist Warehouse network like-for-like sales rose by 14.4% in the financial year to April, ahead of consensus for FY26 of 13.3%.

Commentary notes that sales appear to have accelerated in March/April, likely supported by some consumer stockpiling, while international like-for-like growth also improved.

The broker highlights GLP-1s as an ongoing growth driver, particularly with oral formats and potential PBS inclusion.

Expansion initiatives include a UK joint venture with Greenlight Healthcare and a new NZ distribution centre, while higher fuel costs are being absorbed within existing targets.

Neutral rating. Target $3.20.