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

UBS rates BXB as Buy

UBS believes concerns over Brambles' US pallet quality are easing, with its latest annual survey of US customers indicating quality has strengthened as a competitive advantage over rival suppliers.

Commentary notes customer satisfaction has reached its highest level since the pandemic, while intentions to use more pooled pallets, expectations for organic volume growth and pricing outlook have all improved.

Although seeing modest downside risk to FY27 consensus earnings guidance, the broker believes this caution is already reflected in the share price.

UBS reiterates its Buy rating and lifts its target to $24.30 from $23.80, citing an attractive valuation and improving investor confidence.

Macquarie rates FBU as Underperform

Fletcher Building upgraded earnings (EBIT) guidance for FY26 and Macquarie lifts its earnings forecast to align with the change of 4% higher at the midpoint ex Land Development contributions.

A&NZ volume indices grew over 4Q26 with the analyst assuming 1.5% y/y growth for FY27 versus 1% for FY26.

In FY27, a more challenging NZ residential volume outlook is anticipated and ongoing subdued activity in non-residential and infrastructure as well as softer real prices. Policy support for import competition is also flagged.

EPS forecasts are tweaked higher by 3% in FY26 and 2% in FY27.

Target price rises to NZ$1.74 from $1.65, with no change in Underperform rating.

Bell Potter rates MMA as Initiation of coverage with Speculative Buy

Bell Potter initiates coverage of Maronan Metals with a Speculative Buy rating and 76c target. The Maronan project is a high-grade, long-life polymetal deposit in Queensland and includes a resource of 122m ozs silver, 2mt lead, 271,000t copper, 760,000 ozs gold and 18,000t zinc.

A 40,000m diamond drill program is targeting conversion of the resource, with an updated estimate expected late in 2026. The broker envisages material upside to the preliminary economic assessment and with the potential to develop a larger on-site processing facility.