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

Bell Potter rates FEX as Buy

Fenix Resources' September quarter report showed port surge disruptions constrained shipments, with sales of 1.1Mt missing forecasts and C1 costs worsening by -2% to $82/t, Bell Potter observes.

FY27 sales guidance of 4.7Mt-5.3Mt is unchanged, with higher shipments and expanded processing capacity expected to lower second-half costs.

Following peak investment, the broker expects cash flow to improve and debt to decline, with Weld Range feasibility and funding targeted by FY27 year-end.

Lower iron ore price assumptions drive EPS cuts of -65%, -40% and -39% for FY27-FY29, respectively. Bell Potter's target falls to 38c from 54c; Buy retained.

Citi rates TPW as Neutral

Post the first impressions, Citi upgrades the target price to $5.66 from $4.35.

The analyst acknowledges the improving trend for sales and management's growth initiatives but sees Temple & Webster as continuing to encounter a challenging consumer macro backdrop. The risk is getting back to double-digit growth from FY28.

The upcoming Black Friday sales and Christmas trading are viewed as a good test for management's strategy. Neutral rated.

Initial View: After reviewing today's AGM trading update by Temple & Webster, Citi assesses the ongoing revenue decline has eased, improving materially since August.

While revenue is still declining, the rate has slowed to -4% since August, from -13% in the first six and a half weeks of FY27.

Year-to-date revenue is down -8%, while contribution margin dollars have risen 16%.

Early tests of brand marketing and private label products have lifted sales, suggesting to Citi growth may recover without sacrificing all the recent margin gains.

Management expects revenue growth to resume from mid-February 2027 and has retained FY27 earnings (EBITDA) guidance of $33m–$40m. Neutral rating and $4.35 target.

Macquarie rates ZIP as Outperform

Macquarie observes Zip Co delivered a robust performance in the first quarter with USD TTV growth of 34%. Cash EBTDA of $65m was up 11.4%. US TTV growth was affected by an external fraud and impacted new customer growth in July and August.

The broker assesses this was a temporary headwind and expectations continue to be supported by strong growth prospects. Momentum in Australia continued with revenue up 8.3% and TTV up 3.6%. Management has reaffirmed FY27 guidance.

Target edges down to $3.50 from $3.60 and an Outperform rating is maintained.