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

Morgans rates COF as Trim

Centuria Office REIT posted a FY26 result that was largely in line with expectations and guidance. FY27 guidance comprises FFO of 11.3 cents and a distribution of nine cents, equating to a distribution yield of 10.1% and 79.6% payout ratio.

Morgans observes the balance sheet remains a constraint, with gearing at 43.7%. Leasing volumes were encouraging amongst the strongest in the REIT's history, although this is yet to translate into occupancy.

The prospect of higher interest rates compounds headwinds for a leveraged portfolio with limited near-term earnings growth and Morgans retains a Trim rating with the target rising to $0.88 from $0.80.

UBS rates FPH as Neutral

Ahead of Fisher & Paykel Healthcare's result, UBS' analysis points to strong growth in devices (25%) and consumables (17%). Devices sales look to be supported by MR950 and Airvo3 rollout.

UBS expects first half profit up 27% on NZ$ revenue growth of 21% and modest margin expansion. The broker also lifts forecast EPS by 3% due to faster anaesthesia adoption, higher hospital device sales and stronger NZ$/hedging gains.

Target rises to NZ$42.00 from NZ$37.50, Neutral retained.

Citi rates NCK as Neutral

Post the initial take below, Citi views the FY26 result as showing strong execution on gross margins and operating expenses.

Better margins offset the sales shortfall, while the 39cps final dividend was well ahead of 31.8cps consensus.

The analyst emerged from the conference call more positive but remains cautious on the A&NZ housing cycle, seeing downside risk to earnings over 1H27 and potentially beyond as comparables become more difficult.

Citi economics forecasts one more RBA rate hike in November and questions whether one or two subsequent rate cuts would improve the housing cycle given housing policy changes announced in the May Federal Budget.

Target $17.25, Neutral rated.

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On first take, Citi notes Nick Scali's FY26 net profit after tax of $75.7m was in line with consensus.

Sales missed consensus by -3% but more robust margins were an offsetting factor.

The UK operated at breakeven, which is viewed positively. Cost of doing business was flat. The UK gross margin moved up to 61.2% in 2H from 59.2% in 1H.

On the not so positive side, UK like-for-like sales fell -19% and for FY26 missed consensus expectations by -13%.

A&NZ like-for-like sales missed consensus by -4% in terms of a flat outlook and trading update for FY27, but the metric is muddied by new store growth over 5% in the same period, the broker highlights.

Citi believes the result will be positively received due to the short interest and the low investor ownership.

The results and trading update reflect, in the analysts' view, the more upbeat outlook prior to the May budget, given furniture sales lag property contracts by 3-6 months.

Neutral. Target $14.50.