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

Morgans rates CBA as Sell

Ahead of CommBank's FY25 result next week, Morgans made minor revisions to its model as it factored in -$130m cost items recently announced, latest loan/deposit numbers and current short-term rates.

The result was -1% downgrade to FY25 cash EPS.  Target price trimmed to $97.40 from $97.49. Sell retained.

Citi rates LLC as Buy

Citi highlights a potential near-term catalyst for Lendlease Group with an upcoming buyback announcement.

The buyback, which could be valued up to $500m, is expected to be driven by proceeds from the sale of the group's 25% stake in the Keyton retirement business and its TRX mall in Malaysia.

While this sale alone may not be sufficient for the full buyback, Citi sees potential for an initial, smaller buyback.

The analysts suggest the buyback will be value accretive, as Lendlease stock is trading at a -12% discount to its written down net tangible asset (NTA) metric.

Buy. Target unchanged at $6.80.

Bell Potter rates REA as Upgrade to Buy from Hold

Bell Potter upgrades REA Group to Buy from Hold, with a rise in target price to $284 from $262, on the back of a roll-forward in the valuation and expected circa 20% growth in EPS across FY26 and FY27.

The FY25 result met the broker's expectations and consensus, with the 284c final dividend a clear beat on the forecast 234c per share. The company grossed cash of $298m from the sale of its 17.2% stake in Property Guru, which boosted net cash to $358.1m.

A possible sustainable lift in the payout could be implemented if a suitable M&A opportunity does not arise.

Management continues to point to positive operating jaws for FY26, with high-single-digit opex growth versus expectations for double-digit yield growth.

Commentary suggests the AMAX and Luxe add-on products are showing positive trends with monetisation opportunities.