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Morgans rates DBI as Upgrade to Buy from Hold

Noting the decline in Dalrymple Bay Infrastructure's share price of -14% since 2025 results, Morgans upgrades the stock to Buy from Hold with an unchanged target of $5.35 as there is no factor identifiable for the change in the fundamental value of the business.

At current share price levels, the analyst sees a total shareholder return of circa 21% including a forecast circa 6.2% dividend yield.

Earnings growth is underpinned by CPI-linked base changes and additional earnings on commissioned NECAP (New Expansion Capacity Auction Process) projects.

Dalrymple's 1 July 2026 terminal infrastructure charge reset will reflect March 2026 CPI and the average 10-year Australian Government bond yield heading into June, with the broker assuming 3.8% and 4.95%, respectively.

Morgans also expects the company to issue about $250m of five-year debt to partly refinance bank debt rolled last year, swapped into floating rate at around 170bps over BBSW.

Citi rates LTR as Upgrade to Neutral from Sell

In reaction to interim results, Citi lowers its target price for Liontown to $1.65 from $1.70 and upgrades to Neutral from Sell.

An implied SC6 price of US$1,600/t now aligns with peers, suggests the analyst, and valuation is now seen as more balanced following recent share price weakness.

Management is looking to expand the Kathleen Valley operation to 4mtpa, with the broker incorporating the increase into its base case given strong lithium pricing.

Growth capital expenditure of -$260m over 18 months for the expansion is estimated, including -$100m for a ball mill and flotation tanks and -$160m for underground development.

Macquarie rates REA as Neutral

Australian residential listing volumes were up 1% in February, the first month of growth since March 2025. Macquarie assesses a return to growth is positive and comparables will become easier throughout the second half of FY26.

Two factors are being watched: Sydney and  Melbourne's outperformance with regions lagging and secondly, consumer sentiment, which has a correlation with volumes.

The broker is constructive on REA Group's medium-term earnings expectations, mostly driven by Australian residential yields rather than volumes.

Macquarie retains a Neutral rating and $200 target for REA Group.