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

Citi rates ASX as Neutral

ASX delivered "solid" 1H26 revenue growth, according to Citi, largely offsetting a -20% worsening of costs. It's seen as encouraging that futures fees rose for the first time in three years.

The broker notes average futures fees rose 3cps on mix changes and lower rebates, though moderation is expected in H2.

FY26 cost guidance of 20-23% remains, with $35m of one-off costs (ASIC). 

Uncertainty around regulatory settings and the CEO transition clouds the outlook, the analysts suggest. it's felt trading volumes may moderate from near-record levels.

Target rises by $1.00 to $55.50. Neutral rating maintained.

Morgans rates BRG as Buy

First half results from Breville Group were better than Morgans expected as strong revenue growth offset a gross margin impact related to US tariffs.

The company has guided to an increase in FY26 EBIT and the broker is encouraged by improved visibility into FY27, expecting a strong organic growth trajectory will resume.

Buy rating retained and the target is raised to $40.65 from $36.05.

Bell Potter rates LNW as Buy

Bell Potter upgrades the target price on Light & Wonder to $230 from $176 and retains a Buy rating on the stock ahead of the 4Q2025 earnings report.

The analyst's forecast for 2025 sits below consensus by -1%, and expectations around the 4Q result are low, with management already warning shipments have been moved to 1Q2026 for Asian exports.

The Indiana charitable gaming opening also looks to have been deferred to 1Q2026, with regulatory approvals in December, the broker explains.

Bell Potter tweaks EPS forecasts down by -1% for 2025 and 2026.