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

Morgans rates BBT as Buy

The fourth quarter from betr Entertainment was strong with turnover of $404.3m, up 1.2%. Gross wins increased 7.5% to $57.1m.

What stood out for Morgans was operating cash flow which became positive at $2.6m, the first positive quarter since 2021.

This represented a genuine inflection in the cash profile and validated the conviction that the business is now self-sustaining at scale, the broker adds.

Management has reaffirmed FY27 EBITDA guidance of $13m-$19m. Buy rating. Target edges up to 36c from 35c.

Citi rates DMP as Neutral

Citi points out Domino's Pizza Enterprises held an upbeat conference call, indicating it would like to return to growth in FY27, although formal guidance has yet to be provided.

The company is targeting improvements in same-store sales and order volumes, which the broker believes are important for improving labour utilisation and franchisee profitability.

Management has made good progress in restoring franchisee profitability, particularly in WA, but believes further improvement is still required across the broader network.

The analyst suggests the recent write-downs in France and Taiwan could precede asset sales, which would be a positive catalyst for the stock.

Neutral rated. Target $16.90.

Macquarie rates NAB as Neutral

National Australia Bank outlined its Transaction Banking and Agri-franchise which is a market leader and viewed by Macquarie as challenging to be duplicated by another competitor, giving NAB a point of differentiation.

Over the June quarter, business lending remains good at 4% growth with deposits up 1% q/q and 9% y/y. The bank is expanding share in health, professional services and education. The market share position is noted at "only" 7%-11%.

Mortgage application flows declined -1% q/q. The broker notes the improvement in NPLs, down -9bps q/q can be attributed to the growth in gross loans and advances. Also one large exposure returned to a performing loan.

Macquarie highlights potential margin pressure from rising competition across the bank's market-leading business franchise, albeit it is considered as challenging to replicate.

Neutral rated. Target $39.