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

Citi rates DMP as Buy

Citi is increasingly confident in Domino's Pizza Enterprises' turnaround following its AGM trading update, citing improving franchisee profitability, simplified pricing and new product initiatives.

Pointing to improving sales momentum, the analyst suggests the recovery could extend beyond margins to revenue growth as customer demand strengthens.

While execution risks remain, a sustained recovery in order frequency is needed to confirm the turnaround, in the broker's view.

No change to Buy rating and $21.60 target.

Citi rates LTR as Neutral

Citi cuts its targets for lithium stocks under research coverage by between -27% and -29% following reductions to its lithium price forecasts.

The broker lowers its 2027 and 2028 spodumene concentrate price forecasts by -38% and -13%, respectively, anticipating a shift from lithium market deficit to surplus in 2027.

Neutral ratings are maintained on IGO Ltd amid ongoing Kwinana refinery challenges, and Liontown pending evidence of improved production rates and recoveries.

Citi retains its Buy rating on Pilbara Minerals, supported by low costs, strong liquidity and floor-priced offtake agreements.

The target for Liontown falls to 75c from $1.05.

Macquarie rates MI6 as Outperform

Macquarie highlights Minerals 260 has received approval for $410m in debt financing for its Bullabulling Gold Project, made up of a $335m project facility and $75m working capital facility, at BBSW 3M plus a margin below 3%, with no hedging requirements.

Total available liquidity stands at around $940m, including $530m in cash and deposits, versus estimated project capex of -$855m, the analyst explains. The financial close, the DFS and FID are targeted for 1Q27.

The broker sees potential for a re-rating as funding and technical risks diminish, noting Minerals 260 trades at $327/oz of resources compared with $507/oz for producers, a 54% premium.

FY27-FY28 forecast losses increase by 50% and 3%, while FY29-FY31 EPS forecasts fall -9%/-7%/-2%. Target price unchanged at $1.30.

Outperform rated.