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

UBS rates ASX as Neutral

A second upgrade in target price for ASX by UBS this week, and the fourth this year. This time, the target is lifted to $57.60 from $56.90, and Neutral is maintained.

The latest trigger is a continuation of strong trading momentum into early 2H26, the broker highlights, with January showing outsized growth across cash equities and futures. It points to potential near-term upside to consensus revenue and EPS, in the broker's view.

Upside beyond 2H26 is, however, seen as limited given rising cost risks into FY27, potential clearing and settlement fee resets in FY28, and valuation pressure across global exchanges amid AI disruption concerns.

EPS forecast for 2H26 lifted for 2H26, with the broker's FY26 forecast now 2% ahead of consensus. FY27 EPS estimate raised by 0.8%.

Citi rates BPT as Sell

Beach Energy reported a solid 1H26 earnings beat, with underlying EBITDA of $558m, beating consensus by 7%, Citi highlights.

Core net profit was ahead by 22%, driven by lower operating costs and higher other income, partly offset by higher tariffs and tolls.

Exploration spend was again taken below the line, while one-off Waitsia ramp-up costs were higher than guided, the broker explains. FY26 production and capex guidance remains unchanged.

A key disappointment was the dividend, which at 1c was below the broker's and consensus estimate of 2c, and the broker now expects a refreshed capital management framework in August.

FY26 EPS forecast trimmed by -5% and FY27 by -4% following revised treatment of tolls and tariffs. Citi retains a Sell rating and $1 target price.

Macquarie rates NXT as Outperform

Macquarie points to Singtel and KKR’s acquisition of a 100% stake in ST Telemedia Global Data Centres (STT GDC) for an enterprise value (adjusted for committed capex and minorities) of $15.496bn, which is a premium of 35% to NextDC's valuation.

Comparing the valuations, the analyst highlights STT GDC sold at around 20x adjusted EV/contracted earnings (EBITDA) against NextDC trading at 14.8x currently.

STT GDC operates 50 data centres with 673MW of operating capacity across Europe, India, SE Asia and North Asia. Comparatively, it operates more in the cloud space and most customers are global hyperscalers and blue chip companies.

Macquarie retains an Outperform rating and $22.30 target price. No change to the broker's earnings forecasts.