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

Macquarie rates AMP as Upgrade to Outperform from Neutral

Macquarie upgrades AMP to Outperform from Neutral with the analyst emphasising the Chinese partnerships now generating around 29% of group EBIT as of 1H2026 and the CLPV joint venture is growing in terms of importance.

The broker notes the value of the stake is $589m, and recent minority transactions have been at 2.7x-3.1x times book value, which is double the value of AMP's holding.

EPS forecasts are upgraded by 7% for FY2026 and 15% for FY2027 with the target price moving to $2.92 from $2.28.

Morgan Stanley rates CQR as Equal-weight

The market now pricing in interest rates to remain high, Morgan Stanley points out with 1yr–3yr swaps at around 5%, the broker is expecting the RBA to hike the cash rate by 25bps to 4.6% on 29 September.

The analyst has assessed the REIT sector's FY27/FY28 interest rate hedges and isolated which REITs are most exposed if rates remain elevated.

Scentre Group ((SCG)), along with Charter Hall Retail REIT, Centuria Industrial ((CIP)) and Charter Hall Long WALE REIT ((CLW)) are the most exposed on a FY28 FFO/EPS sensitivity basis, with the largest declining hedges.

Although, Charter Hall Retail REIT has a significant portion of their rental income linked to CPI which may offer a natural hedge of sorts.

Target price $4.50. Equal-weight rated. Industry view: In-Line.

Bell Potter rates EIQ as Speculative Sell

Bell Potter further explores the FDA's unexpected rejection of EchoIQ's EchoSolv heart failure (HF) application. The broker remains frustrated by limited disclosure around the FDA's concerns and the unpublished Mayo study.

While the Mayo Validation Study involving 17,000 patients achieved 99.5% sensitivity and 91% specificity in detecting early-stage heart failure, the FDA issued a 'Not Substantially Equivalent' notice.

A smaller peer-reviewed study appears to support the Mayo findings, yet it lacked statistical power, the analysts explain.

Management at EchoIQ maintains there is a clear pathway to FDA clearance, although several potential options remain under consideration.