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

Bell Potter rates AX1 as Hold

Bell Potter views Frasers Group's on-market takeover bid for Accent Group as opportunistic, noting the offer was made during a period of cyclical weakness in the Australian footwear market. The bid also implies no premium to the prevailing share price, the broker notes.

The bid is seen as undervaluing Accent's dominant position in lifestyle footwear, led by banners including Skechers, Platypus and Hype, as well as its growing apparel portfolio.

While acknowledging recent disappointing earnings from Glue Store and MySale, Bell Potter believes Frasers is pursuing a strategically attractive asset with significant long-term value.

The broker raises its target to 80c from 60c, based on a terminal valuation approach, and retains a Hold rating.

Macquarie rates NIC as Outperform

Nickel Industries had a strong start to 2026, Macquarie observes, and has reported an adjusted EBITDA of US$80m for the first two months of the second quarter, despite the downtime at Hengjaya in April.

The company has also noted a working capital unwind at RKEF operations could deliver US$70m in distributions in early July, supporting the cash balance. A US$15m refund from Shanghai Decent is also expected following the decision to shelve the ONI matte converter project.

Macquarie incorporates the latest updates which drives a 7% increase in 2026 EPS estimates. Target is unchanged at $1.20 and an Outperform rating is maintained.

Citi rates SEK as Buy

Australian job listings weakened further in May, with Citi estimating A&NZ listings fell -2.9% year-on-year compared with a -0.4% decline in April. Australian listings declined -4.5%, while New Zealand remained more resilient, rising around 12%.

The broker believes current trends create downside risk to market expectations for FY27 job volumes, although Seek's earnings remain supported by healthy wage growth.

Australian wages rose 4.1% in May, which Citi expects will continue to support pricing increases across Seek's A&NZ operations.

Buy. Target $24.15.