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

Bell Potter rates ITS as Buy

Infotrust has acquired Catalyst Cyber, a Canberra based cyber security consultancy, for -$5m comprising cash and shares.

The acquisition is expected to contribute around $1.3m in revenue and $300,000 in underlying EBITDA in the second half.

Bell Potter updates forecasts to include the acquisition, with the net result being a modest increase in its target to $0.62 from $0.60.

The broker expects the company will make further acquisitions in the cyber security sector given the strengthened balance sheet following the sale of the cloud and communications business.

Future acquisitions are also expected to be earnings accretive. Buy rating retained.

Citi rates SHL as Upgrade to Neutral from Sell

Citi lowers its target for Sonic Healthcare to $21.50 from $22.00 after adjusting for exchange rate movements. The rating is upgraded to Neutral from Sell given a more balanced risk/reward scenario, in the broker's view.

While Australian pathology volumes in January appear slightly lower year-on-year, Sonic outperformed the broader market in 1H26, the analyst highlights.

Ongoing concerns around US operations and persistent group cost pressures are noted with further downside risks not ruled out.

UBS rates VEA as Buy

Viva Energy faces a stronger refining backdrop, with UBS highlighting the escalating Middle East conflict is driving higher regional fuel and refining margins.

The broker notes attacks on key infrastructure and export limits across North Asia are tightening supply, lifting gasoline, diesel and jet fuel crack spreads to record levels.

The analyst notes an improved earnings outlook, reflecting materially higher Australian refining margin assumptions and upgraded refining earnings forecasts.

Estimates for 2026 EPS are increased by 163% and 2027 EPS by 53% on stronger refining margins.

Refining strength is expected to outweigh weaker Convenience and Mobility trends, with some pressure from lower volumes and consumer response to higher fuel prices.

UBS increases its target price to $2.70 from $2.40 and retains a Buy rating.