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

Morgans rates A2M as Accumulate

Morgans believes a2 Milk Co's preliminary unaudited FY26 update was better than feared. Strength across the broader portfolio offset a sharp decline in China Label infant formula sales caused by supply disruptions, the broker explains.

FY26 profit and cash flow guidance were upgraded, and supply constraints have largely been resolved, the analysts note. Higher FY27 marketing spend is expected to regain lost customers.

The broker's forecasts are little changed for FY26 but trimmed for FY27-FY28, with earnings growth expected to accelerate from FY27 as supply chain investments mature and new markets scale.

Morgans retains an Accumulate rating and lowers the target to $8.30 from $8.70.

Citi rates BHP as Neutral

Citi expects copper prices to remain subdued through July and August before strengthening from September as supportive macro and market conditions re-emerge.

The broker forecasts copper averaging US$14,500/t in the December quarter and reaching US$15,000/t within a year, supported by a more dovish Federal Reserve, tighter physical markets and structural demand.

Underlying copper demand is considered resilient despite distorted headline consumption data caused by last year's surge in Chinese renewable installations.

AI investment, defence spending and manufacturing expansion are likely to underpin medium-term demand, reinforcing Citi's bullish outlook.

For BHP Group: target $66 and Neutral rating.

Bell Potter rates INR as Speculative Buy

The non-binding letters of intent between the Korean Overseas Infrastructure & Urban Development Corporation (KIND), Hyundai Engineering Co. and ioneer have now become Memoranda of Understanding.

The statements from the companies focus on economic partnerships between the Republic of Korea and the United States, critical minerals supply chains and the Rhyolite Ridge project.

The engagement remains non-binding but Bell Potter considers the calibre of the commentary a strong endorsement of the project development pathway.

Commentary posits the project is a strategically important US-located source of lithium and boron supply. Speculative Buy rating and $0.40 target.