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

Citi rates CGF as Buy

Citi reviews ASX-listed diversified financials and expects the Iran conflict to prove relatively short-lived, with markets likely returning to a risk-on stance.

The broker believes investor focus should soon shift back to sector fundamentals as geopolitical volatility fades and risk appetite rebuilds across equity markets.

Excluding non-banks, the analysts' order of preference is Challenger, AMP ((AMP)), Generation Development ((GDG)) and Computershare ((CPU)), all carrying Buy ratings.

Neutral-rated Perpetual ((PPT) and ASX ((ASX)) rank lower in the broker’s order of preference.

The $10 target is retained for Challenger.

Bell Potter rates NIC as Buy

Nickel Industries faces rising sulphur costs following the Middle East conflict, Bell Potter notes, with sulphur prices rising to US$500/t from around US$250/t.

A doubling in sulphur prices cuts the broker's 2026 earnings (EBITDA) forecast by around -15% to US$571m.

The company's diversified operations limit risk, highlight the analysts, with Hengjaya Mine and Rotary Kiln Electric Furnace production not exposed to sulphur input costs.

The broker notes a 5% nickel price increase (not yet included in forecasts) linked to supply concerns would offset higher sulphur costs and lift earnings around 4% above the base case.

Bell Potter retains a Buy rating and target of $1.45.

Morgan Stanley rates RHC as Underweight

Post quantitative guidance from UK peer Spire Healthcare, Morgan Stanley lowers Ramsay Health Care's earnings forecasts for UK hospital operations, which results in group EPS estimates slipping -3.6% for FY26.

UK competitor Spire indicated guidance for UK NHS revenue to fall by -25% y/y due to reduced activity. Committed funding for 2Q-4Q2026 remains unconfirmed, with Spire anticipating a fall of around -5% to -10% y/y.

For Ramsay, UK NHS volumes are circa 75% of total admissions for the operator in FY26.

Target price slips to $35.60 from $35.70. No change in Underweight rating. In-Line industry view.