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

Morgans rates BBN as Accumulate

Morgans details the FY26 trading update for Baby Bunting which was softer than anticipated and represented a downgrade in net profit after tax guidance at the mid-point of -11%.

The downgrade was attributed to weaker trading conditions over 4Q26, notably in the non-refurbished stores, as well as weaker demand around higher-ticket price items such as prams and car safety.

The analyst highlights that newly refurbished stores have continued to trade well with sales rising 16% in 2H and up 18% y/y, albeit the growth rate has slowed from 25% announced in 1H26. Management's FY26 target range is 15%-25% growth.

Morgans continues to be positive on the refurbishment of old stores, although the broker acknowledges the downgrade was disappointing.

EPS forecasts are trimmed accordingly. Target price slips to $1.70 from $1.90. No change to Accumulate rating.

Macquarie rates BPT as Underperform

After a 1H26 windfall, Macquarie lowers oil prices to below consensus in 2027. The Strait of Hormuz flow path is key. Macquarie expects heavy oversupply in 2027, with restocking demand a key swing factor.

The broker has cut earnings forecasts across its coverage.

Macquarie's top picks are Santos in large caps and Amplitude Energy in small-medium. Beach Energy's target falls to 75c from 85c, Underperform retained.

Citi rates CKF as Buy

Ahead of Collins Foods FY26 result, the QSR will be cycling a "modest" trading update for the first eight weeks of FY26, Citi explains with same store sales (SSS) growth of 1.6% in Australia, -0.2% in the Netherlands and 1.3% growth in Germany.

Looking out to 1H27, the analyst points out comps for SSS growth will be more challenging with 1H26 SSS of 2.3%. Consensus forecasts for 1H27 stand at 2.5% in Australia and 2.9% for Europe.

The broker believes there is possible upside as KFC previously lowered delivery fees on the Uber Eats and DoorDash in 2H2025, and flow through benefits may continue.

Buy rated with a $10.30 target price.