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

Citi rates BAP as Neutral

Looking into Bapcor's remuneration structure, Citi views the FY27 performance rights as easier to vest than the FY26, which should support better management retention.

The analyst believes the complete remuneration structure has been implemented to encourage and maximise management stability and incentivise a turnaround.

Neutral rating is retained with the broker highlighting ongoing caution around the consumer and macro-economic backdrop, against a potential pathway of initiatives to improve financial performance.

Target 69c.

UBS rates KMD as Buy

FY26 underlying earnings (EBITDA) for KMD Brands (July year-end) more than doubled to $42m, supported by 11% Kathmandu sales growth, improved gross margins and $8m of tariff refunds, UBS explains.

Higher operating costs prompt UBS to cut its FY27-FY29 earnings forecasts by -20%-29%.

The broker forecasts FY27 earnings of NZ$54m, near the top of the NZ$52m-NZ$55m guidance range but expects limited operating leverage.

It's felt the balance sheet has been de-risked following the equity raising.

The company has received several preliminary takeover approaches.

UBS lowers its target to NZ$2.55 from NZ$3.50 and retains its Buy rating, mainly on valuation grounds.

Bell Potter rates NUF as Buy

Bell Potter raises its target for Nufarm to $3.90 from $3.75 and retains its Buy rating following a FY26 trading update.

Implying 25% year-on-year growth, underlying earnings (EBITDA) guidance of $370m–$380m is consistent with the broker's $375m forecast.

Hybrid Seeds and Omega-3 are performing strongly, the analysts note, with Seeds tracking towards a record result. Crop Protection remains broadly stable despite North American weakness and unplanned plant outages, commentary adds.

Bell Potter raises its FY27 and FY28 earnings forecasts by 3% and 2%, respectively, expecting outage costs not to recur.

Net debt-to-earnings is expected to improve to around 2.0x from 2.7x.