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

Bell Potter rates APE as Upgrade to Buy from Hold

Bell Potter tweaks its price target for Eagers Automotive to $28.50 from $28.75, on a lower valuation, and upgrades the stock to Buy from Hold, noting the new target is some 15% above the current share price, with earnings forecasts post the 2025 result unchanged.

Deliveries were flat in January and down -3% in February y/y, but the analyst notes the softness is due to Toyota supply chain issues, which should be addressed over the year.

As OEMs look to increase Australian volumes in 2026, it is anticipated volumes will rebound over the coming months, and deliveries will be consistent with last year at 1.2m.

The current PER valuation below 20x is viewed as attractive.

Citi rates MPL as Neutral

In reviewing private health insurers, Citi remains attracted to nib Holdings' trading discount to Medibank Private.

The broker holds this view despite Medibank offering greater earnings certainty and defensive appeal if market volatility persists.

Target of $5.10 and Neutral rating for Medibank Private.

Macquarie rates ORG as Neutral

Macquarie assesses the diversity of Origin Energy has worked as oil price volatility offsets energy markets. The business is faced with falling baseload and cap pricing volatility in the energy markets and structural oversupply will weigh on FY27 and FY28.

The upside comes from volatility in the gas market with APLNG benefiting from surplus gas that can be exported in the second half.

The broker tempers the Kraken valuation as earnings take time to emerge, while proxies have experienced falls in their share prices over the last month.

Neutral and $11.25 target retained.