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

Citi rates CPU as Upgrade to Buy from Neutral

Citi lowers its target for Computershare to $39.60 from $40.40 and upgrades to Buy from Neutral.

Risk is now skewed to the upside, according to the broker, with rising M&A, IPO and debt issuance activity potentially offsetting softer margin income. The company is seen as increasingly leveraged to lower rates, stimulating US capital markets.

The broker trims its medium-term EPS forecasts to reflect further US rate cut prospects, but considers additional downside from margin income increasingly limited.

It's noted debt issuance trends remain encouraging across multiple asset classes, while corporate action shows early signs of recovery.

UBS rates TLS as Neutral

UBS expects 2026 to remain constructive for Australian large-cap telcos, with mobile pricing discipline, cost control and easing capex intensity supporting a return on invested capital (ROIC) recovery.

The sector is seen as benefiting from a two-year spectrum holiday and moderating 5G rollout spend.

The broker highlights mobile price rises as the key earnings lever, while monitoring incremental satellite costs, particularly for Telstra Group following its direct-to-handset rollout.

Capital management remains central, according to the analysts, with strong balance sheets supporting further buybacks despite higher future spectrum renewal costs.

Telstra’s valuation is justified, according to the broker, supported by an attractive dividend yield and steady DPS growth outlook.

UBS retains a Neutral rating and raises its target by 10c to $4.90.

The broker's report was issued on January 7.

Shaw and Partners rates WC8 as Buy, High Risk

Shaw and Partners highlights strong final drill results for Wildcat Resources from the 2025 program at the Bolt Cutter lithium discovery. It's felt this reinforces the scale potential of a stacked pegmatite system and provides a potential satellite to the Tabba Tabba project.

The broker sees scope for further growth laterally and at depth, supporting a dual exploration and development strategy. Fast-tracked timelines are enabled by granted mining leases and a secured Native Title Agreement, explain the analysts.

Shaw expects first production by FY28, positioning Wildcat to benefit from a lithium price recovery and structurally strong demand.

The Buy, High Risk rating and 70c target are maintained.