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

UBS rates COL as Neutral

Post another look, UBS retains a Neutral rating and $25.50 target while pointing out that total sales growth in the first 8 weeks was better than the 4Q26 but remained negative at -2.5% y/y.

The analyst sees management's multi-year program to reposition the business as "sound" but emphasises that the business is facing several headwinds in the alcohol segment which challenges the turnaround.

EPS forecasts are tweaked lower by -2% for FY27/FY28 on higher interest costs and D&A.

First take: Coles Group's FY26 underlying profit increased 13.7% to $1.26bn, around 1% ahead of consensus, supported by supermarket margin improvement and disciplined cost management.

UBS suggests the 78c dividend was slightly better than expected. Liquor remained the principal weakness, with earnings falling almost -48%.

Supermarket sales grew 3.7% during the first eight weeks of FY27, while liquor sales declined -2.5%.

Coles expects FY27 capital expenditure of $1.55bn, materially above market forecasts, reflecting investment in distribution infrastructure, stores and operational capabilities.

Higher expenditure and subdued liquor performance temper the otherwise solid result, the broker concludes. Neutral with a $25.50 target.

Macquarie rates DBI as Outperform

Dalrymple Bay Infrastructure's first half earnings were in line, up 4.6% year on year, and operating cashflow was consistent with management's definition of 10%. Interest expense was higher as unhedged base rates increased, and capitalised costs were lower than expected.

Dividend guidance was unchanged at $0.2862 over 2026/27, albeit Macquarie sees upside around early debt refinancing. Dalrymple Bay is considered attractive with a yield of 5.3% backed by strong yield growth.

Positive catalysts are inflation and higher bond rates near term. The main upside event, Macquarie notes, is the 8X development and medium-term repricing to capture more of the difference between rival terminal NQXT and DBCT.

Target rises to $5.51 from $5.48, Outperform retained.

Citi rates WDS as Neutral

In the wake of Woodside Energy's interim report, Citi maintains its Neutral rating and raises its target to $32.50 from $31.25.

First Take: Woodside Energy's first-half earnings (EBITDA) of US$4.65bn were broadly in line with Citi's forecast and 6% above consensus.

Core profit of US$1.33bn beat consensus by around 1%, while operating cash flow (OCF) missed by -8% due to higher tax and hedge settlement payments, the analysts explain.

Management announced -US$350m of annual cost reductions from 2028 and a new capital allocation framework focused on maximising shareholder returns.

Production guidance was narrowed but otherwise unchanged.

Citi expects investors to look through the OCF miss and focus on improved costs and capital allocation.