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Citi rates ANZ as Downgrade to Neutral from Buy

On further inspection from the initial observations, Citi downgrades ANZ Bank to Neutral from Buy with the shares having outperformed the ASX200/Bank index by around 9% year-to-date.

Management has raised the return on tangible equity by around 100bps, which has largely been generated from cost outs and higher rates.

The analyst views further improvement will be more dependent on the macro environment, managing margin and volumes which could be more challenging and riskier. Target price moves to $40.80 from $41.

At first take, Citi notes ANZ Group reported FY26 cash earnings of $7.59bn were in line with expectations, and 0.5% ahead of consensus.

Revenue missed expectations by -1%, reflecting a softer NIM and lower markets income, offset by costs coming in -1.5% below forecasts.

The broker points out 2H26 NIM of 1.53% was -2bps below consensus, while costs benefited from $902m in productivity gains and Suncorp bank synergies.

FY27 cost guidance of $11.26bn implies broadly flat expenses, with management expecting stable underlying margins.

Credit costs were -5% below consensus, although NPLs rose to $9bn from $8.3bn, largely reflecting well-secured Australian mortgage exposures.

CET1 of 11.99% was around -40bps below consensus, partly due to interest rate risk adjustments. Buy. Target $41.00

Bell Potter rates CHI as Initiation of coverage with Buy

Bell Potter initiates coverage of Channel Infrastructure with a Buy rating and $3.20 target price, highlighting its strategic position as New Zealand's largest fuel import terminal, handling around 40% of land transport fuel and 80% of aviation fuel.

The analyst details the company operates over 410ML of contracted storage capacity at Marsden Point, supported by a 170km pipeline to Auckland and long-term take-or-pay contracts with BP, Mobil and Z Energy.

Over half of revenue is fixed or capacity-based, with annual PPI indexation, providing earnings visibility, while the balance is linked to fuel throughput, supported by resilient transport and agricultural demand and aviation growth.

The broker highlights growth opportunities from over 350ML of storage capacity available for repurposing and 45 hectares of development land, including the proposed Marsden Point biorefinery, which could generate additional land lease and storage revenue.

Macquarie rates VEA as Outperform

Macquarie retains a positive outlook for Viva Energy following its investor day, highlighting strong refining conditions and a more credible strategy to improve retail operations.

The broker expects refining strength to continue into 2027, while the commercial and industrial business approaches $500m in underlying earnings (EBITDA).

Macquarie also identifies potential upside exceeding 15% of market capitalisation from property assets.

2026–2029 earnings forecasts are lowered by up to -4.2%, reflecting softer retail sales growth and higher financing costs, the analyst explains.

Outperform rating and target of $3.75 maintained.