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

Morgans rates BPT as Downgrade to Sell from Hold

Morgans downgrades Beach Energy to Sell from Hold, taking into account weaker spot gas prices as well as reducing Waitsia output forecasts for FY26-FY28, being already disappointed with the ramp up from Waitsia.

Conviction has already been affected by repeated project and operating issues and the broker remains cautious on how the company will tackle constrained reserves given the current balance sheet.

Recent share price weakness reflects the easing of spot gas prices because of softer seasonal demand but Morgans considers a potential miss to guidance a more material risk to market sentiment. Target is reduced to $0.81 from $1.10.

Citi rates CKF as Upgrade to Buy from Neutral

Citi upgrades Collins Foods to Buy from Neutral, due to the share price decline of some -14% since March 23, with a new target price of $10.30 from $10.45.

The analyst points out the QSR operator will be cycling a "modest" FY26 trading update across all its geographic regions. 

Other indications from KFC suggest the Australian business has remained resilient for most of FY26.

Ongoing inflationary pressures remain a potential risk and challenge to the upgrade, the broker explains.

Macquarie rates IAG as Downgrade to Neutral from Outperform

Macquarie believes AI increases the risk of disruption for Australia's insurance providers and, although back-office cost savings are obvious, remains sceptical about whether costs will decrease.

Incumbents are considered at a disadvantage because of their complex technology infrastructure. Macquarie considers it inevitable that Australian regulators will impose additional capital restrictions on Australian financial services firms.

Insurance Australia Group is considered most at risk from medium-term trends and the rating is downgraded to Neutral from Outperform. Target is lowered to $8.50 from $9.00.