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

Bell Potter rates FRS as Speculative Buy

Bell Potter views Forrestania Resources' proposed -$300m acquisition of Ramelius Resources' ((RRL)) Edna May Gold Hub as transformational. A dual-processing hub with combined milling capacity of 6.1Mtpa will be created as a result.

The broker believes the enlarged group has a credible pathway to producing more than 200,000 ounces of gold annually within 12-18 months.

The analysts also consider the acquisition attractive, with existing infrastructure effectively underpinning the purchase price.

A Speculative Buy rating is retained, with a target of $1.25, up from $1.15.

Citi rates RMD as Downgrade to Neutral from Buy

Citi downgrades ResMed to Neutral from Buy and reduces its target to $34.00 from $38.50. This comes as the broker lowers its FY27 earnings forecasts to reflect a remediation program for certain Astral portable ventilators built before October 2024.

The broker estimates the issue will reduce FY27 revenue by around -US$220m and earnings (EBIT) by around -US$100m, cutting EPS growth expectations to 4% from 9%.

Citi also sees the potential return of competitor Philips to the US sleep apnoea market as a further headwind.

Citi rates SDR as Buy

Citi sees upside to SiteMinder's FY27 subscriber growth from its partnership with hotel management software provider Mews, which is scheduled to commence in August.

Under the agreement, SiteMinder will become Mews' integrated channel manager, replacing Mews' direct online travel agency connections.

Citi estimates if 10% of Mews' 12,000 properties not currently using SiteMinder adopt the platform, around 1,200 subscribers would be added in FY27.

Buy. Target $6.05.