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

Citi rates ARB as Neutral

ARB Corp and Amotiv ((AOV)) continue to face a challenging macro backdrop, Citi highlights with ongoing weakness in June's new vehicle sales.

The 4X4 category experienced a pick-up in decline, down -14% y/y compared to -11% year-to-date on last year. The 4X4 category also underperformed total vehicle sales which advanced 10% due to a 55% rise in medium SUVs, which ARB does not usually accessorise.

The analyst points out BYD Shark is now the top selling model in the 4X4 category. Industry feedback infers this model is more likely to be accessorised post the April 2026 Cab Chassis launch.

ARB Corp is Neutral rated with a $17.40 target.

UBS rates PXA as Neutral

IPart has recommended a cut to transfer fees of -33% to -36% with most other LENO service fees unchanged, which is expected to affect Pexa Group's revenue down by around -20%, UBS notes.

The regulator's estimate of the group's initial asset base is well below the analyst's $730m forecast, which is attributed to a much lower unrecovered market establishment cost component of $136m versus the broker's $515m.

EPS forecasts are cut -13% for FY27 and -23% for FY28. Target price falls to $9.80 from $12.80, previously.

Neutral rating is retained with ongoing regulatory and earnings uncertainty, as well as downside risks to transaction volumes post the Federal Budget, and a slower UK roll-out.

Morgans rates REA as Buy

Morgans continues to see REA Group as one of the highest quality classified franchises covered.

Concerns over new listing volumes are considered a near-term volatility issue with management able to "pull levers" such as yield to offset weakness.

Due to the Budget changes and the higher interest rate setting, the broker lowers FY27 volume growth to -3% from 2% and FY28 volume growth to -2% from 2%.

EPS forecasts are trimmed by around -5% to -8% for FY27/FY28 but the analyst sees the stock as offering value at current levels.

Buy rated with a $199 target, down from $219, previously.