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Citi rates QBE as Neutral

Citi retains a Neutral rating for QBE Insurance and lowers its target to $24.20 from $27.20 following interim result after removing the previous 10% premium to the broker's valuation.

The broker expects some first-half factors will need to reverse for QBE to achieve FY26 combined operating ratio (COR) guidance, though Citi continues to forecast a slightly better outcome than guidance.

First take:

On first observations, QBE Insurance Group's 1H26 result was broadly in line with Citi's expectations, with a 92.8% combined operating ratio and insurance margin of 12.6%, although underwriting profit fell short of consensus.

Gross written premium growth of 9.5% was stronger than expected, led by 11% ex-rate growth in International, while capital remains strong.

The ex-cat claims and expense ratios were higher than expected, but the analyst accepts management's view these should improve in 2H26, supporting a stronger second-half skew.

The broker considers QBE on track to deliver FY26 guidance, supported by solid premium growth, margins and investment earnings. The interim DPS of 32c was in line and most likely represents the 1H:2H dividend skew. The capital position remains robust.

The stock could trade flat to down, Citi suggests, depending on how the market interprets the result.

Bell Potter rates SKG as Hold

Storage King Group's FY26 FFO per share of 6.24c was broadly in line with Bell Potter and consensus, while FY27 earnings guidance implies a -19.9% decline as higher debt costs weigh on earnings.

Continued weakness in the NZ business was evident, where revenue per available square metre fell -11.7% y/y, compared with 0.7% growth across the portfolio.

FFO per share forecasts are cut by -19% to -25% across FY27-FY29 to reflect higher interest rates, lower interest cost capitalisation and half-year actuals.

The analyst sees Storage King as a potential M&A target following the recent take-private of National Storage REIT, although the low free float remains an obstacle.

The target falls to $1.25 from $1.45, with the stock considered expensive at 23.3x forward PE versus the passive REIT sector average of 15.0x.

Macquarie rates TCL as Neutral

Transurban's FY26 EBITDA rose 8% but came in -3% below Macquarie's forecast, with management free cash flow also 2% below expectations.

The key disappointment was Melbourne, where CityLink has lost trip distance to the West Gate Tunnel without corresponding revenue or trip replacement, while broader traffic conditions remain subdued.

Stronger US roads performance is viewed as a positive, but FY27 DPS guidance of 72cps represents 105% of cash flow and raises the risk of no dividend growth in FY28.

EPS forecasts fall -2% in FY27 and -1% in FY28, primarily reflecting lower Melbourne traffic assumptions. Neutral retained. Target price slips to $13.50 from $13.85.

First take: Transurban Group delivered FY26 EBITDA that was lower than anticipated, with Macquarie describing the performance in Victoria as "terrible". US performance was also weaker amid higher maintenance costs.

The Sydney toll reform has been completed, now progressing through environmental approval for the widening. The main surprise to the broker was withdrawal of the I-285 projects.

Neutral rating and $13.85 target.