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

Morgans rates MEK as Buy

Morgans downgrades Meeka Metals' target price to 17c from 31c post the completion of a two-tranche $42.4m institutional placement to fund the second Mt Holland cash payment, the Turnberry underground development, as well as exploration and capex.

Management also offered a provisional estimate of Sept quarter gold recovery of 7.0koz–7.5koz which missed the analyst's forecast of 9.8koz by around -23% to -29%.

Cash outflows were also higher than expected. Cash at the end of the 1Q27 was flagged at around $50m or circa $59m including Tranche Two raising.

A Buy rating is retained. The broker points to the transition to a two-mine underground operation with first ore expected from Turnberry in January 2027.

Macquarie rates QBE as Upgrade to Outperform from Neutral

Macquarie upgrades QBE Insurance to Outperform from Neutral, with the stock currently trading at a -4.0% discount to weighted international peers on a two-year forward PE. Growth in GWP in 2026 is estimated at 6% amid ongoing strength in the international division.

The broker points to "one of the best starts to the North American hurricane season" and the potential for another buyback to be announced at the update in November. Macquarie incorporates a $400m buyback in its estimates. Target is raised to $26.20 from $23.40.

Citi rates TCL as Neutral

Transurban Group has increased its stakes in Westlink M7, NorthConnex, both to 75%, and WestConnex to 60.5% from CPPIB (Canada Pension Plan Investment Board) for -$4.5bn.

Citi views the transaction as strategically positive for the group at around 18.5x FY28 EV/EBITDA. The deal will be 100% debt funded and slightly EPS dilutive to start, at between -1% to -1.5% for FY28 free cash flow, the analyst estimates.

Over the medium term, the CPI-linked toll indexing and traffic growth is anticipated to offset any dilution. The broker views the ACCC risks as "manageable", but near-term higher bond yields and a lack of traffic momentum are likely to weigh on sentiment.

Retain Neutral. Target $14.70.