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

Citi rates ABB as Buy

Following Aussie Broadband's interim results, Citi raises its target by 10c to $6.25 on a valuation roll-forward. The Buy rating is retained.

The analysts suggest the company is fast approaching a point where it can no longer be classified as a challenger, citing sustained market share gains and increasingly sophisticated product offerings.

A summary of the broker's initial thoughts follows.

In an initial glance, Citi notes Aussie Broadband’s interim result missed expectations on higher costs. It's thought elevated marketing spend reflects heightened competition.

Subscriber momentum remained solid with a further 12,000 connections added in early 2H, which is particularly encouraging, suggest the analysts, given the increased competition.

FY26 underlying EBITDA guidance to $162-167m is an upgrade of around 1.5%, notes Citi, with capex unchanged. Strategic ambitions under the Look-to-28 plan have also been lifted, notes the broker.

While the share price is expected to trade down, Citi is prepared to look-through the interim result 'miss' given the guidance upgrade and Look-to-28 ambitions.

UBS rates ADH as Neutral

Further to the first half result from Adairs, UBS highlights improved operating performance in the second quarter and the reported share gains.

While strong sales in highly promotional areas softened first half gross margins, the outlook is improving into the second half, UBS asserts.

Sales momentum is expected to slow slightly in the first seven weeks into fourth quarter cycling clearance activity. Mocka delivered a strong result with gross margins ahead of guidance, although the focus on furniture remains challenging because of competition and higher interest rates, commentary suggests.

Neutral retained. Target rises to $2.15 from $2.05.

Citi rates GGP as Buy

Citi maintains its Buy rating and price target of $16.00 for Greatland Resources following interim results which were largely a non-event following the December quarter operational update.

The broker's attention now turns to the maiden West Dome Underground resource update due in the March quarter. Lifetime ore of around 6.5Mt is forecast at approximately 2g/t.

The analyst remains confident in the company’s ability to grow reserves and resources, citing its track record at the Telfer operations.