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

Citi rates BOE as Neutral

Citi emphasises Boss Energy's June quarter update will be the next important update on Honeymoon and whether management can confirm a wider spaced wellfield design is economically and technically viable.

The U308 producer is also noted for having lower diesel exposure via its ISR concept at Honeymoon to power drilling instead of moving materials. The analyst assumes diesel usage is around -60% to -80% lower than conventional mining per pound.

Current FY26 guidance appears "conservative" at around 1.6mlbs but the feasibility study is the major factor determining Boss Energy's medium term cost and production outlook.

Neutral rating unchanged. Target price rises to $1.60 from $1.25

Morgan Stanley rates DXS as Underweight

Morgan Stanley believes it is too early to be bullish on Dexus despite what it describes as an "interesting valuation", having done an analysis on how the Atlassian HQ in Sydney, to be completed in December, could affect the company's earnings.

The broker is convinced Dexus will only deliver underlying FFO growth of less than 1% in FY27 and less than 2% in FY28. This compares with consensus forecasts for a decline in FFO in FY27 and 4.3% bounce in FY28.

On a three-year view, Dexus may seem attractive yet Morgan Stanley does not believe the potential re-rating will be linear and retains an Underweight rating. Target is reduced to $6.37 from $7.15. Industry view is In-Line.

Macquarie rates PLS as Outperform

Macquarie expects fewer brownfield expansion projects in the Lithium sector, a slower pace of staged growth, reduced stripping activity, and the deferral of non-critical work should diesel supply tighten further.

The broker estimates fuel accounted for around 7% of PLS Group’s FOB unit costs in 1H FY26, with diesel primarily used for the mobile fleet and product haulage.

A third party manages the full concentrate logistics chain, from site handling to port and loading, under a long-term agreement, with fuel costs passed through.

Unchanged $5.50 target and Outperform rating.

The broker's targets and ratings are also unchanged for Liontown Resources ((LTR)), IGO Ltd ((IGO)), and Elevra Lithium ((ELV)).