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

UBS rates FRW as Neutral

UBS proposes the investment case for Freightways Group centres around growth in Express Package volumes as the NZ economy improves, as well as a return to more sustainable earnings growth.

Margins are expected to lift, underpinned by higher industry pricing, improved facility utilisation and lower IT costs, the broker explains.

At current share price levels, the stock is considered to be discounting the forecast 3-year CAGR in EPS at 19x earnings, versus a longer-term average PER valuation of 17x.

To become more upbeat on the share price, UBS reckons an earnings-accretive acquisition in Australia would be required.

EPS forecasts are trimmed slightly for FY26/FY27. The Neutral rating is retained with a target price of NZ$14.45, up from NZ$14.20.

Bell Potter rates MVF as Hold

Bell Potter adjusts earnings estimates for Monash IVF as guidance has been lowered to underlying net profit in a range of $17-18m from a range of $20-23m previously.

The downgrade reflects Australian stimulated cycles on a recurring 12-month basis that are down -1.9%, amid continuing difficulty in market conditions. Countering this is improvement the company is starting to witness in market share.

The broker suggests the lower guidance is more about the macro settings rather than branding issues, while noting the international business is continuing to grow. Hold maintained. Target is $0.75.

Morgans rates SYL as Buy

Morgans updates its forecasts for Symal Group to reflect the timing of recent acquisitions and higher depreciation, amortisation and interest expenses.

While the broker's earnings (EBITDA) forecasts rise for FY27 and FY28, underlying earnings forecasts have been reduced as acquisition-related costs are recognised ahead of the full earnings contribution.

Earnings growth is expected to reaccelerate in FY27 and FY28 as recently acquired businesses are integrated.

Morgans remains positive on Symal's long-term outlook, citing exposure to infrastructure, digital, energy and defence markets, alongside further acquisition opportunities.

The broker retains a Buy rating and unchanged $3.35 target. Recent share price weakness is seen as a buying opportunity.