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

UBS rates PMT as Buy

UBS continues to view there is an attractive "risk-reward" in lithium and the possibility of another upcycle, as the Middle East conflict supports EV demand.

There are ongoing lithium deficits, with scope for further tightening driven by higher EV and battery storage demand, with US$4,000/t spodumene expected by the end of 2026 or early 2027.

PMET Resources remains Buy rated with an 80c target.

Macquarie rates RIO as Upgrade to Outperform from Neutral

Macquarie has raised its 2026 commodity price forecasts, with the largest increases for thermal coal up 29%, aluminium up 26%, metallurgical coal up 15%, gold up 7%, iron ore up 6% and copper up 3%.

In the near term, the broker is overweight thermal coal, aluminium, metallurgical coal and nickel relative to consensus, while remaining even-weight on copper, iron ore, zinc, lithium, gold, silver and manganese.

Alumina is the only commodity where Macquarie is underweight.

The broker’s Australian dollar forecast is around 6% stronger than consensus. While higher prices support earnings, higher FX and fuel costs offset some of the benefit, the analyst explains.

The target for Rio Tinto rises to $168 from $155 and the rating is upgraded to Outperform from Neutral.

This is a summary of research produced by Macquarie on March 27.

Citi rates XRO as Buy

Xero’s partnership with Anthropic highlights ongoing collaboration between AI developers and software providers, Citi notes.

The move aligns with management’s strategy of leveraging AI assistants as a distribution and go-to-market channel, the analyst explains.

A key risk is that AI assistants could evolve into primary platforms for small businesses, the broker cautions, potentially disintermediating software providers.

Xero’s app ecosystem and go-to-market strength are seen as important competitive advantages.

Citi retains a Buy rating and target of $144.80.