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Morgans rates ADH as Downgrade to Accumulate from Buy

Post Adairs' FY26 trading update which revealed continuing weakness in Focus on Furniture, Morgans downgrades the stock to Accumulate from Buy.

The retailer is expected to generate positive sales growth at the mid-point of guidance of around 3.7% y/y with some improvement in gross margin over the 2H26. This is expected to continue into FY27.

Guidance around Mocka indicates ongoing strength in sales, with around 22% revenue growth. Focus on Furniture sales were indicated to decline at the midpoint of guidance and are significantly below the analyst's forecast.

EPS forecasts are lowered to align with the latest guidance by -8% for FY26 and -19.4% for FY27. The target price is reduced to $1.70.

Citi rates SFR as Neutral

Citi believes copper prices should regain momentum from September despite subdued near-term demand, forecasting the metal will reach US$15,000/t within a year. The LME cash copper price is currently around US$13,100/t.

The broker notes headline copper consumption data has been distorted by last year's surge in Chinese renewable energy installations, while underlying global demand remains resilient and manufacturing sentiment robust.

Commentary notes near-term gains may be constrained by US copper tariff uncertainty and weaker gold prices through July and August, before a more supportive macro backdrop will likely drive prices higher.

The broker's target for Neutral-rated Sandfire Resources is $12.20.

Macquarie rates TLC as Outperform

Ahead of FY26 results (August 19), Macquarie's forecasts for Australian lottery volumes are unchanged, with digital penetration still expected to reach 50% by FY30.

Lottery Corp is expected to report above trend growth in FY27, benefiting from lottery jackpot normalisation. Beyond this it will be affected with the closure of digital Keno and the Victorian lottery license renewal, which will mean higher depreciation and interest, the broker adds.

Outperform rating and $6 target.