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

Morgans rates CWY as Buy

Morgans retains a Buy rating and $2.80 target for Cleanaway Waste Management after the company indicated FY26 underlying earnings (EBIT) will be around $470m. This is near the midpoint of guidance and slightly above forecasts by the broker and consensus.

The update implies to the analyst 14% annual EBIT growth, marking a fourth consecutive year of mid- to high-teen growth.

Morgans raises its FY26 EBIT forecast by 1%, lifting earnings per share by around 2%.

While free cash flow (FCF) is expected to remain subdued in FY26, the broker anticipates a stronger FY27 supported by cost savings and improved cash conversion.

Morgans rates MSV as Downgrade to Accumulate from Speculative Buy

Morgans downgrades its rating for Mitchell Services to Accumulate from Speculative Buy following recent share price strength, while maintaining its 60c target.

The June quarter exceeded the broker's revenue expectations as drilling activity accelerated, with average operating rigs rising to 62 and finishing the year at 65.

Revenue of $56.5m comfortably exceeded the analyst's forecast of $51.3m, increasing from $48.5m in the previous quarter and $50.5m a year earlier.

Despite higher mobilisation costs, commentary notes the full-year earnings (EBITDA) margin improved to 20.6%, the strongest in a decade.

A net cash position of $3.5m and robust cash generation have increased confidence in a higher fully franked dividend, with Morgans lifting its final dividend forecast to 3c per share from 2c.

Macquarie rates PDN as Outperform

On further inspection post the initial response yesterday below, Macquarie lifts FY26 EPS forecasts by 130% on higher 4Q26 U308 sales and lowers FY27 EPS forecasts by -25% on lower production with FY28 lifted by 19% on higher production estimates.

Target price slips -4.5% to $12.65 due to higher sustaining capex at Langer Heinrich. Outperform retained. The analyst believes the U308 cycle has further upside with Paladin offering "attractive leverage".

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Macquarie's quick response indicates Paladin Energy's quarterly production has beaten its own and consensus expectations, even as volumes were -5% lower than in the previous quarter.

FY27 production guidance of 5.1Mlb-5.5Mlb is a little stronger than expected, but the broker also believes consensus had higher expectations.

Also important: CNSC has granted 'sufficiency status' for PLS Construction Licence and Paladin management is aiming to complete application hearings by end-2027.