Weekly Ratings, Targets, Forecast Changes – 27-02-26

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This story features AMA GROUP LIMITED, and other companies.
For more info SHARE ANALYSIS: AMA
The company is included in ALL-ORDS

Weekly update on stockbroker recommendation, target price, and earnings forecast changes.

By Mark Woodruff

Guide:

The FNArena database tabulates the views of eight major Australian and international stockbrokers: Citi, Bell Potter, Macquarie, Morgan Stanley, Morgans, Ord Minnett, Shaw and Partners and UBS.

For the purpose of broker rating correlation, Outperform and Overweight ratings are grouped as Buy, Neutral is grouped with Hold and Underperform and Underweight are grouped as Sell to provide a Buy/Hold/Sell (B/H/S) ratio.

Ratings, consensus target price and forecast earnings tables are published at the bottom of this report.

Summary

Period: Monday February 23 to Friday February 27, 2026
Total Upgrades: 40
Total Downgrades: 24
Net Ratings Breakdown: Buy 65.95%; Hold 26.41%; Sell 7.64%

In the latter stages of the current reporting season, a period in which the bulk of corporate updates are released, FNArena recorded 40 upgrades and 24 downgrades across ASX-listed companies for the week ending Friday, February 27, 2026, based on brokers monitored daily.

Movements up and down in average target prices in the tables below are relatively equal in percentage terms, albeit with a slight negative bias.

The top six increases in target prices correspond with reporting season result ‘beats’ in FNArena’s Corporate Results Monitor, which summarises analysts’ views at https://fnarena.com/index.php/2026/02/27/fnarena-corporate-results-monitor-27-02-2026/

A notable feature among this top six, which includes Reece, PWR Holdings, Tourism Holdings, and Woolworths Group, is the presence of Imdex and Monadelphous Group, both leveraged to activity across the Resources sector through the provision of diversified services and solutions.

Reinforcing this theme was the “knockout” interim result from small-cap contractor NRW Holdings, according to broker Morgans, which prompted a dedicated story on the company https://fnarena.com/index.php/2026/02/25/strong-momentum-guides-nrw-holdings-outlook/, along with a further piece on Imdex: https://fnarena.com/index.php/2026/02/26/imdex-rides-the-exploration-wave/

Imdex received three rating upgrades to Buy from separate brokers. Monadelphous was downgraded twice to Hold, due to valuation, and because the risk/reward equation is now more balanced, according to Macquarie.

Accent Group, ARB Corp and Ebos Group also received two rating upgrades apiece after missing broker expectations, while, in the aftermath of exceeding expectations, Dalrymple Bay Infrastructure received two downgrades to Hold or equivalent following share price strength.

Six of the top eight companies with percentage declines in average target prices revealed reporting season results that disappointed relative to expectations. These were ImpediMed, ARB Corp, Bapcor, HMC Capital, Guzman y Gomez, and shipbuilder Austal.

Fisher & Paykel Healthcare and WiseTech Global appear first and fourth on the table for reduced price targets, respectively, despite recording better-than-forecast financial results.

Fisher & Paykel Healthcare’s lower average target appears to be due to the delayed impact of one broker’s move to a New Zealand target (not taken up in the average price) from the prior Australian dollar equivalent.

WiseTech’s lower average target largely reflects analysts’ reduced medium-term growth forecasts along with lower assumed peer multiples.

At first glance, the appearance of Telix Pharmaceuticals, Woodside Energy, and Growthpoint Properties in the forecast earnings downgrade list below strikes a discordant note.

The percentage decline for Telix Pharmaceuticals is exaggerated by the small forecast numbers involved and is partly due to an increased research and development spend, resulting in a lower average target of $24.80, down from $27.24 prior to FY25 results.

Earnings forecasts at Woodside Energy are lower as the broker’s earnings forecasts roll-forward to a new financial year, while Macquarie expects lower second half funds from operations for Growthpoint Properties due to the impact of lease and fund expiries.

In contrast to releasing disappointing financial market updates, Nickel Industries, Megaport, and Newmont Corp received material increases to their average FY26 earnings forecasts.

While Nickel Industries FY25 result was technically a ‘miss’ at the profit line, Bell Potter viewed the overall result as a positive one that continues to demonstrate the fundamental strength and profitability of the miner’s vertically integrated business model.

This broker raised its target for Nickel Industries to $1.45 from $1.30.

For Megaport, Macquarie, UBS and Morgans raised their respective targets, with the latter identifying a number of one-off costs embedded in second-half guidance.

UBS upgraded its rating for Megaport to Buy from Neutral with a higher target of $15.70 from $14.65, stressing the -28% sell off in reaction to interim results was unjustified.

Newmont Corp’s earnings forecast uplift was partly due to Morgans raising its gold production forecasts. As a result, 2026 and 2027 earnings forecasts rose 9% and 8%, respectively.

This broker anticipates ongoing strong momentum in operating earnings and cash flow, supported by Newmont’s diversified portfolio of tier-1 gold assets.

Separate to reporting season results, Macquarie lowered its target price on lithium miner PMET Resources to 65c from 75c after incorporating an equity raising into forecasts. The appearance of the company in the higher average target price list is the result of a database gremlin.

Overall, the broker remains constructive on lithium, nominating Pilbara Minerals as its preferred large-cap exposure, while the smaller Elevra Lithium is seen as offering the greatest leverage to higher lithium prices.

Total Buy ratings for the eight stockbrokerages daily monitored by FNArena still sit at an historically elevated percentage of 65.95%.

With only 7.64% in Sell ratings, this leaves 26.41% for Neutral/Holds.

Upgrade

AMA GROUP LIMITED ((AMA)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 2/0/0

AMA Group’s 1H26 saw earnings up 22% and margins up 80bps year on year, Morgans notes, and ongoing recovery of the core Collision business. 

While the second quarter was slightly softer than expected (broadly flat year on year), the group continues to make good progress on its recovery with a seasonally stronger second half ahead, Morgans suggests.

The broker sees a solid growth profile as the business continues to recover, with further upside to forecasts through inorganic growth and better-than-expected outcomes against the targeted cost initiatives.

Target rises to 99c from 91c, upgrade to Buy from Accumulate.

ARB CORPORATION LIMITED ((ARB)) Upgrade to Buy from Accumulate by Morgans and Upgrade to Buy from Neutral by UBS .B/H/S: 5/1/0

Morgans upgrades its rating for ARB Corp to Buy from Accumulate and sets a $31.85 target price, down from $32.00, following pre-released interim results.

Sales declined -1% to $358m and PBT fell -16% to $57.1m on gross margin compression of -235bps, explains the analyst.

The broker highlights Export as the standout, with US sales up 26% and ARB product sales through ORW/4WP rising 100% on a like-for-like basis. Aftermarket sales declined by -1.7%.

Operating cash flow (OCF) of $63.9m was strong, according to Morgans, leaving net cash of $59m and supporting a flat 34c interim dividend. 

After a further review of ARB Corp’s interim results, UBS lowers its target to $25.50 from $27.85 and upgrades to Buy from Neutral. The analysts spy an opportunity to buy a high quality business on depressed earnings.

A summary of the broker’s initial thoughts follows.

On first inspection, ARB Corp’s 1H26 results were largely pre-released, UBS notes, yet management’s FY26 guidance infers consensus EPS downgrades of between -2% and -4%.

While some headwinds are in the past, the analyst points to other factors impacting ARB going forward, including labour constraints, lower OEM new vehicle sales and supply, as well as weakness in the Australian aftermarket due to softer sales of key vehicle models.

See also ARB downgrade.

ATTURRA LIMITED ((ATA)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 2/0/0

Atturra’s 1H26 result was in line with December guidance, Morgans notes and FY26 guidance reaffirmed at $30m to $31m, implying a strong 2H recovery.

Revenue rose 28% y/y but margins were compressed by a contract dispute and a -$2m restructure cost, with EBITDA margins falling to 4% in 1H26 before expected to rebound to around 12% in 2H26.

Management maintains the disputed contract was a one off event. Operating cash flow is expcted recover in 2H, with net cash projected to reach around $55m by FY26 year end, according to the analyst.

The stock is upgraded to Buy from Accumulate on valuation grounds with an unchanged $0.80 target price.

ACCENT GROUP LIMITED ((AX1)) Upgrade to Buy from Hold by Morgans and Upgrade to Buy from Neutral by Citi .B/H/S: 2/2/1

Accent Group reported 1H26 earnings down -30% year on year, in line with the revised guidance range. The decline was driven by soft comparable sales and significant operating de-leverage from lower gross margins, Morgans notes.

Margins have been impacted by promotional activity, the broker points out, but closure of loss-making Glue should provide incremental earnings in FY27. New banners such as Nude Lucy and the rollout of Sports Direct in A&NZ show attractive potential for long-term growth.

Morgans has increased FY27 earnings forecast by 11.3%, largely driven by removing Glue losses. Target rises to $1.30 from $1.10, upgrade to Buy from Hold.

On second reflection, Citi has decided to upgrade Accent Group to Buy from Neutral “on the back of a materially improved earnings outlook given Glue and mySale losses will not continue post FY26”.

Whereas forecasts have reduced for FY26, they have been lifted by 16% and 11% for the two following years and this pushes up the price target by… wait for it… 62% to $1.75.

Citi’s early response:

At first glance, Citi notes Accent Group’s 1H26 profit was -9% below consensus and down -41% year on year driven by lower gross margin, higher D&A and net interest. An interim dividend of 3.25cps was declared, slightly below 3.5cps consensus.

While the result missed expectations, Citi thinks the set up into FY27 looks interesting given consensus earnings growth seems conservative when taking into account that the Glue and MySale losses won’t continue in FY27 and the business should benefit from the strengthening AUD.

Neutral and $1.08 target retained.

BEACON LIGHTING GROUP LIMITED ((BLX)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 3/1/0

Morgans upgrades Beacon Lighting to Buy from Accumulate and reduces the target to $3.20 from $3.80. The first half was weaker than expected amid softer sales in both retail and trade which has reduced expectations of a meaningful recovery in the second half.

Morgans lowers sales forecasts FY26 and FY27, resulting in -5% and -6% downgrades to EBITDA forecast, respectively.

The broker pointts out the end markets are cyclical and the company remains well-positioned for strong growth when consumer sentiment improves.

BRAMBLES LIMITED ((BXB)) Upgrade to Accumulate from Hold by Morgans .B/H/S: 4/2/0

Morgans upgrades Brambles to Accumulate from Hold and raises the target to $27.00 from $25.70. First half earnings were better than expected amid supply chain and productivity improvements.

Management has maintained a strong track record of margin expansion despite subdued consumer demand. The broker points out this is a global, defensive business with a strong market position and the ability to adjust pricing to reflect input costs.

New business wins and structural improvements in asset efficiency are expected to drive further operating leverage and free cash flow so the stock is considered an attractive long-term investment.

COG FINANCIAL SERVICES LIMITED ((COG)) Upgrade to Buy from Hold by Ord Minnett .B/H/S: 4/0/0

Following interim results for COG Financial Services, Ord Minnett  lowers its target price to $1.90 from $2.40 and upgrades its rating by two notches to Buy from Hold.

Management reported profit of $13.6m, up 11% and ahead of the broker’s expectation. Earnings (EBITDA) of $22.3m also beat the analysts’ prior estimate by 7%, driven by strength in salary packaging and novated leasing.

The board declared an interim dividend of 3.5c fully franked, also ahead of Ord Minnett’s forecast.

The broker upgrades FY26 profit forecasts by 10% reflecting acquisitions and more than 20% organic growth in novated leasing.

Around -30% volume disruption is assumed from FY28 should the FBT exemption on electric vehicle novated leases be halved after a government review.

CORONADO GLOBAL RESOURCES INC ((CRN)) Upgrade to Neutral from Underperform by Macquarie .B/H/S: 1/3/0

Macquarie raises its target for Coronado Global Resources to 50c from 40c and upgrades to Neutral from Underperform, citing recent share price weakness and an improving balance sheet.

Also, given the high degree of operational and financial leverage, the analyst considers the stock relatively undervalued given the difference between spot and implied pricing.

2025 profit fell -18% while net debt ‘missed’ by -7% versus consensus, the broker highlights.

FY26 production and capex guidance were broadly in line with the analyst’s forecasts. Operating costs were 4% better than expected.

Macquarie estimates free cash flow (FCF) upside of US$0.14-US$0.27bn in 2026 at coal prices of US$220-242/t.

DOMINO’S PIZZA ENTERPRISES LIMITED ((DMP)) Upgrade to Neutral from Underperform by Macquarie .B/H/S: 3/1/2

Domino’s Pizza Enterprises delivered first half earnings that were largely in line and Macquarie assessess the result is indicative of the impact of the reset of pricing strategy.

As the company continues to roll out its strategy across Australasia the key inflection point will be the return to volume growth which signals a re-basing of sales and customer acceptance of the new model as well as the effectiveness of the promotional strategy, the broker concludes.

Franchisee profitability is seen moving in the right direction although execution risks remain while global comparable sales are under pressure. Rating is upgraded to Neutral from Underperform. Target is raised to $20.40 from $19.40.

EBOS GROUP LIMITED ((EBO)) Upgrade to Buy from Neutral by Citi and Upgrade to Buy from Accumulate by Ord Minnett .B/H/S: 5/0/0

EBOS Group’s 1H26 revenue came in 4% ahead of the consensus estimate, driven by Healthcare and Animal Care. The core earnings (EBITDA) margin of 4.4% missed by around -30bps and fell sequentially, highlights the analyst.

Citi attributes the margin pressure to duplicated distribution centre costs and a mix shift to higher-priced drugs, but points out FY26 earnings (EBITDA) guidance of $615-$635m was maintained.

The broker expects lower profit growth than consensus in FY27 before acceleration in FY28.

Citi lifts its FY27-29 earnings forecasts by 3-4% and upgrades to Buy from Neutral. Target of $26 is unchanged.

Ebos Group provided a first half result that revealed pricing pressure was evident, with gross margins contracting around -60 basis points and cash flow deteriorating.

Ord Minnett expects a reduction in capital intensity and a re-acceleration of earnings growth will drive a re-rating in the medium term.

FY26 EBITDA guidance has been reiterated and the broker assesses a stronger exit rate from the first half bodes well. Rating is upgraded to Buy from Accumulate. Target is reduced to $30 from $33.

FORTESCUE LIMITED ((FMG)) Upgrade to Hold from Trim by Morgans .B/H/S: 1/5/1

Fortescue’s underlying earnings were up 23% year on year, 5% ahead of consensus, with margin at 53% versus 48% a year ago. The interim dividend of 62c, up 24% year on year, represents a 65% payout of profit, Morgans notes.

It was a strong hematite result, but the broker points out 43% of group capex is directed to activities generating zero current earnings, compressing free cash flow conversion to 48% and return on capital employed to 19%.

Morgans sees benchmark iron ore prices trading within current cost support and Fortescue appears close to fair value after its recent weakness. Upgrade to Hold from Trim with an unchanged $20.60 target.

The broker’s concern is not with new energy or decarbonisation as a strategic objective, but with Fortescue’s capacity to execute it.

GEMLIFE COMMUNITIES GROUP ((GLF)) Upgrade to Buy from Neutral by Citi .B/H/S: 4/0/0

Citi raises its target for Gemlife Communities to $6.10 from $5.60 and upgrades to Buy from Neutral.

The analyst sees the result driving strong EPS growth as well as consensus forecast upgrades.

A summary of the broker’s initial research follows.

On first take, Gemlife Communities announced 2025 underlying profit after tax which beat consensus forecasts and was 5% above consensus and Citi’s forecasts.

Settlement volumes came in below prospectus forecasts by -6%, but pricing was 12% above due to a higher release of premium lots.

Management’s new 2026 guidance for EPS stands at 28.5-30c, inferring EPS growth of 20-27% y/y, which is 11% above consensus and 10% higher than the analyst’s forecast.

Development settlements are flagged at 420 for 2026 by the company, another beat on consensus and the broker’s 408 estimate, with around 60% or 348 contracts in hand/expressions of interest.

GUZMAN Y GOMEZ LIMITED ((GYG)) Upgrade to Buy from Neutral by UBS .B/H/S: 4/0/1

Further to the half-year results from Guzman y Gomez, UBS upgrades to Buy from Neutral and reduces its target to $21 from $24. EBITDA was below estimates in the first half, but the upgrade has been made because of attractive growth at a lower valuation.

There are multiple drivers, the broker contends, driven by menu innovation, renewed delivery growth and increased opening hours.

Start-up US network has been an increasing focus for investors, given guidance of rising losses in FY26, yet the company has flagged customers are positive on the brand and food quality, although the broker adds same-store sales growth to date has been modest.

HMC CAPITAL LIMITED ((HMC)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 3/3/0

HMC Capital has reaffirmed its pre-tax operating EPS target of at least $0.40 for FY26, expecting lower returns in private equity will be offset by fair value gains in energy transition.

Macquarie asserts the share price is reflecting an overly negative view of the business, signalling -12% discount to NTA. Demonstrating growth and continued execution remain key and the broker upgrades to Outperform from Neutral. Target is reduced to $3.96 from $4.63.

IMDEX LIMITED ((IMD)) Upgrade to Buy from Neutral by UBS and Upgrade to Buy from Accumulate by Morgans and Upgrade to Buy from Hold by Bell Potter .B/H/S: 5/0/0

On further inspection, UBS upgrades Imdex to Buy from Neutral and raises the target to $4.70 from $3.50 post a rise in EPS forecasts of 8% for FY26 and 10% for FY27.

****

At first look, Imdex delivered a strong result with net profit after tax 13% ahead of UBS’ expectations, supported by 2Q26 revenue growth of 23% y/y, highlighting a strengthening exploration cycle.

The analyst notes margins expanded 140bps to 31.6%, demonstrating operating leverage to rising activity levels.

Management commented it enters 2H26 in an improving exploration market, with major budgets increasing and better junior funding conditions supporting demand.

Consensus currently implies 2H26 revenue growth of 10% y/y, which UBS believes is too low and likely to be materially upgraded. Neutral. Target $3.50.

Imdex delivered a strong result, Morgans notes. Second quarter revenue, which would typically reflect seasonal softness, was in line with the first quarter and increased 23% year on year despite a challenging fluids comparison, with comparables set to ease from 2H.

More importantly, the result reinforces Morgans’ confidence in the base business’s ability to deliver meaningful operating leverage. While margins are likely to moderate as broadly earnings-neutral acquisitions are consolidated, the broker is now comfortable that core margins will continue to expand alongside volume growth.

Target rises to $4.70 from $3.70, upgrade to Buy from Accumulate.

Following interim results for Imdex, Bell Potter raises its target by $1.00 to $4.60 and upgrades to Buy from Hold. 

Strong revenue growth was reported across the regions with 20% in the Americas, 9% in APAC, and 17% in EMEA, highlight the analysts.

Underlying earnings (EBITDA) of $77.9m rose 22% year-on-year and beat the broker’s forecasts by 9% on revenue of $246.6m, up 16%. Profit of $28.8m exceeded the analysts’ expectations by 19%.

The board declared a 1.7c fully franked interim dividend (Bell Potter’s forecast 1.5c).

The broker highlights not only broad-based regional growth, but also improving exploration activity into 2H FY26. EPS forecasts are upgraded by 16% in FY26, 7% in FY27 and 5% in FY28.

INGHAMS GROUP LIMITED ((ING)) Upgrade to Buy from Hold by Morgans .B/H/S: 2/1/1

Inghams Group deliver a weak first half result, Morgans comments, albeit in line with guidance, while revising FY26 underlying EBITDA guidance to $180-200m, down -15-24% on FY25,\.

Commentary suggests the downgrade is reflecting the timing of benefits from operating improvements with the recovery taking longer than previously expected.

Morgans points out the company has recovered quickly from such issues in the past and is confident the new CEO will ultimately prove positive, given a strong track record running the NZ operations.

As Australasia’s largest poultry producer, the business is considered well placed and the broker upgrades to Buy from Hold, reducing the target to $2.90 from $3.03.

IRESS LIMITED ((IRE)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 2/0/0

Iress delivered a solid 2025 result with underlying earnings 4.7% ahead of Morgans’ estimate and the group’s 2025 guidance range. Divisionally each segment delivered solid earnings growth half on half, the broker notes.

Management flagged that capex for 2026 will remain in line with 2025, which implies further operating leverage is expected.

Iress has executed on the stabilisation stage of its business turnaround strategy over recent years, Morgans notes.

Further efficiency plans are now underway, however, commentary suggests improving the customer proposition and new product initiatives are required to drive organic revenue growth.

Target rises to $10.95 from $10.50, upgrade to Buy from Accumulate.

LGI LIMITED ((LGI)) Upgrade to Buy from Accumulate by Ord Minnett .B/H/S: 4/0/0

1H26 saw a strong operational performance and a dividend beat from LGI. This, along with affirmed expectations for a ‘modest increase’ in Australian Carbon Credit Unit production in FY27 and progress on key projects, gives Ord Minnett increased confidence in the growth outlook.

Ord Minnett forecasts ACCU production growth will re-surge in FY28 and for pricing dynamics to remain robust.

The broker upgrade to Buy from Accumulate with increased confidence in the growth outlook and LGI screening attractively on key metrics following the recent retracement in the stock price. Target falls to $4.45 from $4.70.

MINERAL RESOURCES LIMITED ((MIN)) Upgrade to Buy from Hold by Morgans .B/H/S: 5/0/1

Mineral Resources’ 1H26 earnings and underlying profit beat consensus with Onslow, Mining Services and lithium delivering a clear step-change in profitability, Morgans notes.

The result demonstrates a clear pathway to achieving a more than 2x net debt to earnings target by the end of FY26, with net debt already reduced materially and further deleveraging expected with supportive commodity prices and POSCO proceeds to be received in 2H26.

No interim dividend was declared but the improving underlying earnings across all divisions and strengthened balance sheet suggest dividend resumption is plausible from FY27, Morgans believes, subject to capital allocation priorities.

Target rises to $68 from $67, upgrade to Buy from Hold.

MCMILLAN SHAKESPEARE LIMITED ((MMS)) Upgrade to Buy from Hold by Bell Potter .B/H/S: 3/1/0

Bell Potter lowers its price target for McMillan Shakespeare to $18.50 from $19.70, following interim results distorted by normalisation adjustments. 

Statutory revenue rose 7% year-on-year to $297.4m and earnings (EBITDA) increased 12% to $84.7m, broadly in line with the analysts’ expectations, while profit of $50.3m grew 11%.

Bell Potter highlights $5.8m in run-rate productivity benefits within Group Remuneration Services (GRS) and positive earnings momentum into 2H26, supported by customer growth and finance receivables. 

The broker’s rating is upgraded to Buy from Hold largely due to the currently depressed valuation multiple.

A $10m on-market buyback was announced alongside a softer dividend, note the analysts.

See also MMS downgrade.

MEGAPORT LIMITED ((MP1)) Upgrade to Buy from Neutral by UBS .B/H/S: 4/1/0

UBS upgrades Megaport to Buy from Neutral with a higher target of $15.70 from $14.65, stressing the -28% sell off in reaction to the 1H26 result is unjustified.

The broker highlights accelerating constant currency ARR of 19% growth, improved net revenue retention of 11% growth, stronger new product ARR, lower churn and rising customer additions.

Forex headwinds obscure underlying growth, while positioning the company as an AI beneficiary.

UBS acknowledges concerns around an implied -$18m h/h opex uplift in 2H26 to -$79m and annualisation into FY27, but estimates flat earnings (EBITDA) margins in FY27 with 6% cost growth, and models Latitude EBITDA margins of 41-47% versus 50% at acquisition.

The broker views valuation as attractive at 1yr forward EV/Sales of 3.6x and EV/EBITDA of 14.5x, with potential for over 25% revenue growth and circa 40% 3yr EBITDA CAGR.

The analyst raises FY26-30 EBITDA forecasts by 43% to 126% and WACC increased to 11.5% from 9.1% to reflect investment and acquisition risk.

NANOSONICS LIMITED ((NAN)) Upgrade to Hold from Sell by Bell Potter .B/H/S: 1/1/0

Nanosonics reported 1H26 revenues of $102.2m (consensus of $105m), up 9% year on year, while earnings of $8.5m were modestly ahead of consensus but only in line with the prior first half.

The US remained the powerhouse for revenue growth, Bell Potter notes, generating double digit percentage growth across capital sales and consumables

However, total revenues failed to exceed the prior sequential period for the first time since the end of the covid period due to the combination of currency headwinds and slowing consumables sales.

Target falls to $3.60 from $4.10, but Bell Potter upgrades to Hold from Sell based on valuation. In the broker’s view the stock is oversold and the current market price represents a reasonable entry point.

NAVIGATOR GLOBAL INVESTMENTS LIMITED ((NGI)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 4/0/0

Morgans upgrades Navigator Global Investments to Buy from Accumulate, pointing out that while first half net profit was well below forecasts underlying EBITDA was “comfortably ahead”.

FY26 guidance is for adjusted EBITDA to be down versus FY25 on lower performance fees in NGI Strategic, which the broker asserts is “somewhat broad”. EPS estimates are lowered by -1% for FY26 and -2% for FY27.

All up, Morgans believes the result was reasonable as underlying performance was better than anticipated, the company is comfortable with consensus estimates, and the acquisition pipeline appears active. Target is reduced to $3.35 from $3.71.

PERSEUS MINING LIMITED ((PRU)) Upgrade to Buy from Neutral by UBS .B/H/S: 2/2/0

UBS upgrades Perseus Mining to Buy from Neutral with a higher target price of $7.15 from $7.10.

Perseus’ interim dividend of US5cps was robust and materially ahead of expecations at circa US2.5cps and consensus around US2cps, despite a softer 4Q with FY26 considered as a transition year.

The broker notes production guidance of 400-440koz is retained, while cost guidance was lifted by 9% in DecQ on higher gold prices and royalties in Cote d’Ivoire, which remain under negotiation.

Perseus announced a 73% increase in Nyanzaga reserves to 4.0Moz from 2.3Moz, adding around five years of mine life and supporting first gold in 1Q202727, with UBS assuming a 17 years of mine life and 243koz in FY28 at AISC of US$1,620/oz.

Commentary posits the balance sheet remains strong at around US$1.15bn, preserving optionality for shareholder returns, inorganic growth and investment across CMA underground and Nyanzaga. 

The analyst lifts EPS forecasts by 2% for FY26 and 1% for FY27.

PETER WARREN AUTOMOTIVE HOLDINGS LIMITED ((PWR)) Upgrade to Buy from Hold by Ord Minnett .B/H/S: 2/1/0

Maintaining a $2.00 target, Ord Minnett upgrades its rating for Peter Warren Automotive to Buy from Hold following interim results.

The broker highlights three consecutive halves of gross margin at or above 16.1%, with the FY25 margin currently at 16.2%, supported by 14% growth in used vehicles and strength in service and parts.

New car sales rose a modest 2% and inventory fell -5%, highlight the analysts.

Ord Minnett notes opex rose/worsened by -2.4% and opex/revenue declined by -10bps to 11.9%, with seasonal improvement expected in H2.

The broker increases its profit (PBT) forecasts by between 1-8% after the recent Wakeling acquisition and observes the stock trades on attractive valuation multiples.

QBE INSURANCE GROUP LIMITED ((QBE)) Upgrade to Buy from Hold by Ord Minnett .B/H/S: 6/0/0

Ord Minnett lifts its target for QBE Insurance  to $26 from $22 and upgrades to Buy from Hold after a stronger-than-expected second-half 2025 result. The final dividend also came in comfortably ahead of the consensus estimate, explains the analyst.

Net profit beat the broker’s forecast due to lower weather claims. Favourable reinsurance renewals reduce retention to US$250m from US$300m and cut large single-risk exposure to -US$25m per event.

Ord Minnett highlights a 1 percentage point rise in the underlying combined operating ratio (COR) to 94.2%, driven by North American Accident & Health (A&H) losses.

REECE LIMITED ((REH)) Upgrade to Accumulate from Hold by Morgans .B/H/S: 3/2/1

Reece’s 1H26 result was better than expected. The outperformance was driven by the A&NZ division, Morgans notes, while the US was softer than anticipated.

Management noted early signs of a gradual recovery in A&NZ, albeit uneven. Importantly, for Morgans, competitive pressures in the US waterworks segment have eased, with operations now stabilising.

Given Reece’s leverage to an eventual housing market upturn in both regions, Morgans thinks now is an attractive time to consider adding the stock to a diversified portfolio.

Target rises to $17.70 from $11.25, upgrade to Accumulate from Hold.

RAMELIUS RESOURCES LIMITED ((RMS)) Upgrade to Buy from Neutral by UBS .B/H/S: 4/1/0

UBS upgrades Ramelius Resources to Buy from Neutral with an unchanged target of $5.20.

The gold producer reported in line financials, with the analyst highlighting a higher than expected 3cps dividend supported by a cash balance of $658m. 

UBS expects free cash flow to be pressured near term as the company invests toward over 500kozpa by FY30, but sees a rapid step-up in coming years on grade driven production growth and leading AISC, with Dalgaranga the key. 

The first truckload of Never Never ore has been delivered to Mt Magnet and first stoping is expected in March to April, supporting upside risk to near term production guidance if grades outperform. 

UBS incorporates gold price collars and one off acquisition costs, which lower FY26 EPS forecasts but lift FY27 to FY28.

SCENTRE GROUP ((SCG)) Upgrade to Neutral from Underperform by Macquarie .B/H/S: 2/3/0

Scentre Group delivered a 2025 result that was slightly ahead of Macquarie’s estimates. Guidance for 2026 is for “at least 4%” growth in free funds from operations, reflecting dilution from the distribution reinvestment plan.

The company intends to redeem US$750m in 2030 senior bonds, to execute on a refinancing opportunity after asset sales, which will provide a margin benefit that is partially offset by a higher debt balance.

The broker notes the stock is now trading in line with historical earnings multiples and at 6% premium to book and upgrades to Neutral from Underperform on valuation. Target rises to $3.73 from $3.64.

STEADFAST GROUP LIMITED ((SDF)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 4/1/0

Macquarie upgrades Steadfast Group to Outperform from Neutral and lowers its target price to $4.80 from $5.50 following the 1H26 result.

Commentary posits organic growth over 1H26 organic growth was slow and earnings quality was weaker due to a new pro-forma interpretation of EBITDA, although FY26 guidance was unchanged, reflecting what Macquarie describes as the quality of the high cash flow model and management team.

FY26 M&A guidance has increased to around $434m from circa $202m, which the broker believes is appropriate at this stage of the cycle and supportive of FY27 earnings, with management preferring accretive acquisitions over buy-backs.

Cost reduction actions in head office and subsidiary expenses by around $7m and circa $4m respectively are expected 2H26, with -$17m post-tax restructuring costs treated below the line, with plans to recycle non-core assets into higher ROE opportunities.

SITEMINDER LIMITED ((SDR)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 6/0/0

SiteMinder’s 1H26 result was largely per expectations at the revenue line but marginally below on earnings, Morgans notes. Growth in transaction revenue and the mix-shift towards the higher margin Smart Platform offering saw the gross margin expand 98bps to 67.8%

Morgans has undertaken a broad review of assumptions for SiteMinder, remaining attracted to the company’s opportunity to monetise its $85bn of gross booking value, which it plans to leverage through its Smart Platform strategy.

Given the significant discount of the current share price versus the broker’s valuation, Morgans upgrades to Buy from Accumulate. Target falls to $7.00 from $8.10.

SONIC HEALTHCARE LIMITED ((SHL)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 3/3/1

Sonic Healthcare’s 1H26 revenue beat was pulled down by softer margins, Macquarie notes, leading earnings to be in line with expectations. FY26 guidance is maintained, with the broker at the midpoint.

The performance of recent EU acquisitions was ahead of Macquarie’s forecasts, while the Australian business outperformed peers due to Sonic’s specialist skew and private billing.

Early European synergies are now visible, while the full uplift lays ahead, supported by resilient Australian trends and the US drag easing, thus strengthening medium-term earnings trajectory, Macquarie suggests.

Upgrade to Outperform from Neutral. Target rises to $27.50 from $25.20.

STANMORE RESOURCES LIMITED ((SMR)) Upgrade to Hold from Trim by Morgans .B/H/S: 2/1/0

Stanmore Resources delivered a result broadly in line with market expectations. Operationally, 2025 was a record year, Morgans notes, but the strong performance did not translate into higher earnings, with coal prices dropping to their cyclical lows during the year.

Revenue and earnings declined -21% and -45% year on year respectively, and Stanmore reported a -US$47m net loss for 2025 compared with a US$192m net profit in 2024, yet the miner has surprisingly rewarded its investors, declaring a US8.9c dividend.

Morgans maintain a view that prices can move materially above consensus expectations. However, Stanmore’s current production profile is beginning to decline and without growth, its earnings capacity in the absence of higher commodity prices will decline.

That said, rating upgraded to Hold from Trim. Target unchanged at $2.95.

SYMAL GROUP LIMITED ((SYL)) Upgrade to Buy from Accumulate by Ord Minnett .B/H/S: 2/0/0

Symal Group delivered a first half result that was ahead of Ord Minnett’s estimates at the revenue line, while the EBITDA margin was lower, caused by the ramp up of the Eastern Freeway upgrade and sharper pricing on projects in growth states.

The Eastern Freeway upgrade will provide stability to the revenue profile, in the broker’s view, while the geographic expansion delivers diversity in revenue sources, positioning the business for the Olympic opportunity in Brisbane.

Ord Minnett upgrades to Buy from Accumulate and the target edges down to $3.30 from $3.35.

WAGNERS HOLDING CO. LIMITED ((WGN)) Upgrade to Buy from Accumulate by Morgans .B/H/S: 1/0/0

Wagners delivered an exceptional 1H26 result, with EBIT up 72%, beating guidance, Morgans and consensus, driven by strong demand and improved margins across Construction Materials and CFT poles.

FY26 EBIT guidance was materially upgraded to $62m to $66m, implying a 32% uplift to 2H expectations, with CFT poles on track to triple FY25 volumes and benefiting from expanding utility adoption.

The balance sheet moved to a net cash position following a capital raise and strong operating cash flow, supporting a -$50m to -$60m capex program to capture ongoing South-East Queensland infrastructure demand.

FY26 to FY28 EBIT forecasts rise by 15%, 14% and 14% respectively and the stock is upgraded to Buy from Accumulate.

Target raised to $5 from $3.75.

Downgrade

ALFABS AUSTRALIA LIMITED ((AAL)) Downgrade to Hold from Buy by Bell Potter .B/H/S: 0/1/0

Bell Potter downgrades Alfabs to Hold from Buy and cuts the target price to $0.36 from $0.55 following a weaker 1H FY26 result and a higher weighted average cost of capital assumption.

Group revenue rose 28% y/y and was broadly in line, but underlying earnings (EBITDA) missed forecasts due to weaker Mining and Engineering margins, with underlying NPAT down -43% y/y and no interim dividend declared.

Mining utilisation was temporarily impacted by the Dartbrook mine closure, resulting in a -$2.8m write-off, while net debt increased to $42.8m and leverage rose to 1.7x.

Management is targeting -$2.0m in annual cost savings, progressing an underground equipment hire acquisition to be debt funded, and expects capex to decline materially in 2H FY26.

EPS forecasts are cut by -49%/-28%/-24% for FY26/FY27/FY28, due to sustained weak coal prices and higher prospective leverage as key risks.

AGL ENERGY LIMITED ((AGL)) Downgrade to Underweight from Equal-weight by Morgan Stanley .B/H/S: 4/0/1

Morgan Stanley downgrades AGL Energy to Underweight from Equal-weight, noting lower and less volatile electricity prices are headwind for the company. Power market volatility has moderated reducing outsized gains for batteries and flexible generation.

Electricity demand may be growing but supply growth has run ahead, with no scheduled closures until the end of 2028.

The broker considers both AGL Energy’s and Origin Energy’s investment in batteries attractive, with existing grid connections and revenue opportunities not available to competitors.

The share prices have outperformed since strong first half results and the broker now finds share prices are exceeding its valuation. Target is $9.66. Industry View: In-Line.

ADRAD HOLDINGS LIMITED ((AHL)) Downgrade to Hold from Buy by Bell Potter .B/H/S: 0/1/0

Adrad’s interim underlying earnings (EBITDA) of $9.4m beat Bell Potter’s forecast by 4% on stronger margins despite revenue missing by -4%. Statutory earnings of $8.3m were -8% below forecast due to -$1.1m in restructuring costs, explain the analysts.

The interim dividend of 1.45c fully franked was slightly below the broker’s expectation.

Bell Potter expects improved revenue and margins in the 2H. Potential incentive payments could weigh on FY26 profit, highlights the broker. 

The target rises to $1.15 from $1.10 and the rating is downgraded to Hold from Buy on valuation.

AIR NEW ZEALAND LIMITED ((AIZ)) Downgrade to Underperform from Outperform by Macquarie .B/H/S: 0/0/2

Macquarie observes Air New Zealand’s 1H26 result underscores the recovery is proving more complex than simply returning grounded aircraft to service.

Profit before tax  (PBT)loss of -NZ$59m missed the bottom of guidance, and even adjusting for a NZ$90m net engine headwind, comparable profitability remains well below last year as cost inflation, maintenance and weaker cargo weigh on earnings.

Earnings forecasts have been materially downgraded with FY26 PBT to a loss -NZ$128m from -NZ$16m and FY27 to NZ$36m from NZ$194m, with a meaningful recovery now pushed out to FY28.

The stock is downgraded to Underperform from Outperform and lowered the target price to NZ$0.51 from NZ$0.67, reflecting slower EBITDA recovery and higher net debt.

Management’s strategic review is now central, with Macquarie estimating NZ$150-NZ$200m of additional benefits are required to restore returns to an acceptable ROIC.

ATLAS ARTERIA ((ALX)) Downgrade to Trim from Hold by Morgans .B/H/S: 2/3/0

Morgans downgrades Atlas Arteria to Trim from Neutral with a target price of $4.31 from $4.58.

Interim earnings result was largely in line at the operating level, but higher costs, adverse FX movements and APRR valuation decay reduced Morgans’ business as usual valuation by -28cps to $3.99 per share.

First time FY26 DPS guidance of 40cps implies around an.8.1% cash yield. The analyst estimates the payout can be sustained until mid 2028 using excess corporate cash, before potentially easing to 37 to 38cps from 2H28 absent capital release from Chicago Skyway.

APRR delivered modest NPAT growth while Chicago Skyway and Dulles Greenway both reported solid EBITDA growth but higher than expected costs, with Dulles distributions unlikely before FY29 at the earliest.

ARB CORPORATION LIMITED ((ARB)) Downgrade to Neutral from Buy by Citi .B/H/S: 5/1/0

On further inspection, Citi is downgrading the stock to Neutral from Buy until there is more certainty and confidence around management dealing with declining aftermarket sales in Australia.

The analyst sees both structural and cyclical headwinds for that business but remains upbeat on the US business. EPS forecasts are lowered by -2% for FY26-FY28 on lower margins and sales estimates. The target price is cut to $22.05 from $42.25, down more than -50%.

****

At first glance, Citi notes interim profit for ARB Corp of $42.2m is broadly in line with the consensus estimate, while the interim dividend of 34c came in ahead of the 28.9c forecast.

The broker highlights 26.1% US sales growth and improving ORW/4WP profitability, but notes Australian aftermarket sales fell -1.7% and OEM revenue declined -38%. Margins were pressured by currency and lower factory recoveries, explain the analysts.

Management guides to an improved 2H26 performance versus 1H and broadly flat margins year-on-year, though Citi expects consensus 2H profit growth forecasts will need to be trimmed.

Citi questions whether greater reinvestment may be required to reinvigorate core growth.

Buy rating. Target $42.25.

See also ARB upgrade.

AUSTAL LIMITED ((ASB)) Downgrade to Sell from Neutral High Risk by Citi .B/H/S: 1/1/1

Following interim results, Citi lowers its target for Austal to $4.50 from $6.90 and downgrades to Sell from Neutral High Risk, citing heightened risks around accounting issues.

The broker acknowledges solid progress in securing new contracts and a more diversified order book.  However, these gains have been overshadowed by audit qualification concerns, a revenue recognition misstep, and weak operating cash flow.

The analyst also sees elevated risk in the early stages of major programs. The unexpected departure of a key executive is also noted.

A summary of the broker’s initial thoughts follows.

Citi notes Austal’s 1H26 earnings (EBIT) of $60.3m beat consensus by 23%. As expected, no dividend was declared. In an early assessment of today’s release, the analyst notes the strong outcome contrasts with the recent FY26 guidance downgrade.

The broker highlights a record $17.7bn order book and progress toward $500m support revenue by FY27. However, it’s thought a qualified audit opinion and weaker cash conversion will weigh on confidence.

The audit report was qualified due to an inability to sight sufficient evidence relating to contractual relief for compensation for cost growth in relation to Towing, Salvage and Rescue Ship (T-ATS) and Auxiliary Floating Dry Dock Medium (AFDM).

Net cash fell to $241m amid higher capex, highlights Citi.

FY26 EBIT guidance of $110m was reiterated, implying to the broker a softer H2.

DALRYMPLE BAY INFRASTRUCTURE LIMITED ((DBI)) Downgrade to Hold from Accumulate by Morgans and Downgrade to Neutral from Outperform by Macquarie .B/H/S: 1/2/0

Morgans raises its target for Dalrymple Bay Infrastructure to $5.35 from $5.10, due to forecast changes and a valuation roll-forward, following a “solid” FY25 result. The broker’s rating is downgraded to Hold from Accumulate after recent share price strength.

The underlying earnings (EBITDA) margin remained exceptionally strong in the mid-94% range, highlights the analyst. Management expects FY26 corporate costs to be broadly flat on FY25 at -$16.8m.

Dividend guidance for the 12 months to June 2026 is increased by around 8% to 26.37cpu. Management is now targeting the upper end of its 60-80% funds from operations (FFO) payout range, explains the broker.

Macquarie increases its target price to $5.45 from $5.33 for Dalrymple Bay Infrastructure and downgrades to Neutral from Outperform due to the recent share price rally.

FY25 earnings (EBITDA) of $294m are in line with the broker’s expectation, while profit is lower due to -$103m in debt refinancing break costs.

The company refinanced $1.07bn of debt to lower funding costs and support a higher payout ratio, explains the analyst.

An 8% lift to dividend guidance was a material surprise to Macquarie. The 2026 dividend expectation has risen around 10% to 27.5c and the payout ratio has moved to the upper end of the 60-80% range.

DURATEC LIMITED ((DUR)) Downgrade to Accumulate from Buy by Ord Minnett .B/H/S: 3/0/0

Ord Minnett notes Duratec posted a first half result that was weaker than expected. The gross profit margin did expand to 20.3% and the broker acknowledges a more profitable platform is being built.

Outlook commentary appears bullish, with a $400m order book and $4.6bn pipeline.

The broker considers the business well-positioned to capitalise on the opportunities and increases its target to $2.15 from $1.95. As this is aligned with current pricing, the rating is moved to Accumulate from Buy.

EMECO HOLDINGS LIMITED ((EHL)) Downgrade to Neutral from Outperform by Macquarie .B/H/S: 0/1/0

Emeco Holdings’ 1H26 operating earnings were largely in line with Macquarie. Mining sector operating conditions remain positive, the broker notes, with a robust production volume outlook, despite recent commodity price volatility.

Rental revenue grew 14% year on year, largely underpinned by the increase in services across fully maintained projects. Emeco’s 2H26 focus will be on maintaining its safety record, ongoing improvement of financial metrics including the return on capital target of 20% and increased cash flow, fleet utilisation and optimisation.

The group will continue to expand its maintenance services offering as it grows fully maintained rental projects, Macquarie notes. Recent share price strength leads the broker to downgrade to Neutral from Outperform. Target unchanged at $1.40.

LINDSAY AUSTRALIA LIMITED ((LAU)) Downgrade to Accumulate from Buy by Morgans .B/H/S: 3/0/0

Lindsay Australia’s 1H26 operating result was largely in line with Morgans’ expectations, albeit a handful of factors (largely timing issues) saw cashflow and net-leverage more muted in 1H26, which the broker suggests should normalise into 2H26.

Lindsay has demonstrated solid execution of its Road and Rail strategy and has strengthened the business in recent years. Morgans continues to see capacity to deliver organic growth across the group, despite the competitive landscape representing headwinds to near-term earnings.

While market pressures remain, the company is well placed to drive growth via incremental efficiency/scale benefits, Morgans suggests. Target unchanged at 80c, downgrade to Accumulate from Buy.

LIFESTYLE COMMUNITIES LIMITED ((LIC)) Downgrade to Neutral from Buy by Citi .B/H/S: 0/4/0

Lifestyle Communities’ interim result showed improved quarterly sales of 60 in Q2 versus 50 in Q1, highlights Citi. 

Lower net debt (from land sales and targeted inventory reduction) and renegotiated covenants have also helped ease balance sheet risk, explain the analysts.

The broker cautions development margins remain around 11%, well below prior peaks, with recovery reliant on Melbourne pricing. Current sales imply 200-240 per annum at current run rates.

Citi’s earnings forecasts for FY27-28 are cut by -25%, and the broker’s target falls to $5.60 from $7.00. Rating downgraded to Neutral from Buy.

MCMILLAN SHAKESPEARE LIMITED ((MMS)) Downgrade to Neutral from Outperform by Macquarie .B/H/S: 3/1/0

Macquarie has downgraded McMillan Shakespeare to Neutral from Outperform and cut its target price to $16.40 from $19.69 following a weaker than expected 1H26 result and rising policy risk.

The broker suggests 1H26 net profit after tax  was -5 to -7% below consensus, driven by a -20.9% decline in plan & support services EBITDA as NDIS fee changes compressed margins to 21.9%, more than offsetting 5.4% revenue growth.

Group remuneration services earnings (EBITDA) rose 12.8% to $62.5m with margins up 265bps to 41.2%, while AMS EBITDA increased 0.9% to $14.9m, broadly flat overall.

While management expects 2H26 underlying net profit after tax to benefit from customer growth, higher Onboard Finance receivables and efficiency gains, Macquarie highlights ongoing risks from the Federal Government’s review of the EV FBT scheme and NDIS policy settings.

EPS forecast is lowered by -2.2% for FY26, and unchanged for FY27. The valuation discount ascribed to the stock widened to reflect elevated policy uncertainty.

See also MMS upgrade.

MONADELPHOUS GROUP LIMITED ((MND)) Downgrade to Hold from Buy by Morgans and Downgrade to Neutral from Outperform by Macquarie .B/H/S: 2/3/0

Morgans lifts its target price for Monadelphous Group to $33.85 from $29.00 following a strong 1H26 result. The broker’s rating is downgraded to Hold from Buy on valuation.

Earnings (EBITDA) rose by 58% year-on-year and beat the broker’s forecast by 15%, while profit increased by 70% excluding prior insurance proceeds. These outcomes were supported by solid margins and strong cash conversion, observes the analyst.

FY26 revenue guidance is upgraded to around 30% growth from 20-25%, with margins expected to be maintained. The broker expects growth to moderate in FY27 as one-off hook-up and commissioning projects roll off.

Morgans sees upside for Monadelphous Group increasingly reliant on securing major contracts such as Nolans.

Macquarie downgrades Monadelphous Group to Neutral from Outperform and raises its target price to $33.95 from $31.00 following a strong 1H26 result.

Net profit after tax tose 53% y/y and was 7% ahead of Macquarie and 17% above consensus expectations, with revenue of $1.53bn and earnings (EBITDA) margin of 7.59% both exceeding expectations.

Management’s FY26 revenue growth guidance was lifted to 30% growth from 20-25%, with margins flagged to be maintained in 2H, supported by strong execution and favourable mix.

EPS forecasts are raised by 11%/9%/9% for FY26/FY27/FY28, respectively, but the analyst sees a high bar into FY27, forecasting group revenue growth of 2% after 32% in FY26.

NEWMONT CORPORATION REGISTERED ((NEM)) Downgrade to Accumulate from Buy by Morgans .B/H/S: 5/0/0

Newmont Corp’s fourth quarter results materially beat estimates while 2026 guidance is in line with expectations. Morgans updates its modelling and makes several changes to gold production forecasts as well as costs and capital expenditure for 2026-28.

As a result, 2026 and 2027 EBITTDA forecast have risen 9% and 8%, respectively. The broker expects strong momentum in operating earnings and cash flow will continue, supported by a diversified portfolio of tier-1 gold assets.

Rating moves back to Accumulate from Buy while the target is reduced to $187 from $190.

RESIMAC GROUP LIMITED ((RMC)) Downgrade to Sell from Neutral by Citi .B/H/S: 1/1/1

Resimac Group’s 1H26 profit of $28.5m came in above expectations and a 9c special dividend was a positive surprise, highlights Citi.

The broker estimates H2 earnings will fall around -$6m half-on-half due to the run-off of the Westpac ((WBC)) auto loan book. It’s also noted rising rates and elevated run-off continue to weigh on new mortgage flows for non-bank lenders.

Citi believes the group is demonstrating sound margin discipline but sees further large capital returns as less likely.

The broker trims its FY26-28 EPS forecasts and downgrades to Sell from Neutral. The target price eases to 98c from $1.00.

SIGMA HEALTHCARE LIMITED ((SIG)) Downgrade to Accumulate from Buy by Morgans .B/H/S: 4/3/0

Sigma Healthcare delivered a solid 1H26 result in line with consensus, with underlying EBIT up 18.7% and NPAT up 19.2%, supported by strong Chemist Warehouse performance, Morgans explains.

Chemist Warehouse like for like sales rose 15%, total store sales increased 17.2%, and international network sales lifted 24.5%, with integration synergies tracking toward the $100m FY29 target.

Revenue growth exceeded cost growth, highlighting operating leverage benefits, while leverage remains conservative at 0.6x EBITDA and operating cash flow is strong.

Rating moves to Accumulate from Buy following recent share price strength. Target slips to $3.36 from $3.39. EPS forecasts are trimmed by -4% and -2% for FY26/FY27.

SKS TECHNOLOGIES GROUP LIMITED ((SKS)) Downgrade to Accumulate from Buy by Morgans .B/H/S: 1/0/0

Following ‘solid” interim results for SKS Technologies, Morgans raises its target to $5.10 from $4.25 and downgrades to Accumulate from Buy.

Profit (NPAT) of $8.8m was a 51.7% year-on-year increase and beats the broker’s forecast by around 22%. PBT margins also exceeded expectation, despite project phasing between large data centre jobs, explains the analyst.

FY26 guidance for Revenue of $340m and PBT of $34m was reaffirmed.

Work in hand has risen to around $304m, with significant FY27 visibility, according to Morgans, and a large data-centre tender pipeline.

TABCORP HOLDINGS LIMITED ((TAH)) Downgrade to Accumulate from Buy by Ord Minnett .B/H/S: 3/1/1

Ord Minnett downgrades Tabcorp Holdings to Accumulate from Buy and raises the target price to $1.17 from $1.02 following a stronger-than-expected 1H FY26 result.

Interim earnings (EBITDA) came in well ahead of expectations, driven by strong revenue growth and lower-than-forecast operating costs, delivering wider margins despite softer wagering yields.

Market share gains and tight cost control are viewed as having boosted operational leverage, estimating a 3% uplift in EBITDA for every 1% increase in wagering revenue.

EPS forecasts are reduced by -3.6%/-6.3%/-8.2% for FY26/FY27/FY28, though the broker still expects a 20%-plus EPS CAGR across the forecast period. The recommendation is trimmed on valuation grounds after the sharp share price rally.

WOODSIDE ENERGY GROUP LIMITED ((WDS)) Downgrade to Lighten from Hold by Ord Minnett .B/H/S: 1/4/0

Woodside Energy’s 2025 underlying net profit and final dividend proved ahead of Ord Minnett’s forecasts amid fewer minority interests and lower tax charges.

Post the result the broker raises EPS estimates by 26.1% and 12.4% for 2026 and 2027, respectively.

Guidance for production and capital expenditure in 2026 has been maintained and there was no more information on the search for a permanent CEO, although an appointment has been expected by the end of March.

Ord Minnett suggests this uncertainty regarding a permanent CEO adds the risks of a rebasing of forecasts or a change in strategic direction. This leads to a downgrade to the rating to Lighten from Hold. Target is $24.

WORLEY LIMITED ((WOR)) Downgrade to Hold from Buy by Morgans .B/H/S: 4/1/0

Worley delivered a softer than expected 1H26 result, with segment EBITA down -8% y/y and below Morgans forecast, reflecting weaker performance across Energy, Chemicals and Resources.

An -$82m restructuring charge was taken below the line, while leading indicators remain subdued with backlog flat at $16.7bn, headcount down -8% y/y, and utilisation slipping below target.

Cyclical headwinds from weaker upstream and chemicals capex, combined with structural shifts toward subsea EPC, cloud the medium term outlook, with FY27 consensus EBITA growth of 16% appearing ambitious.

FY26 EBITA forecasts are lowered FY27 cut by by -5%. Target price cut to $12.20 from $16.40 and the stock is downgrade to Hold from Buy.

WOOLWORTHS GROUP LIMITED ((WOW)) Downgrade to Accumulate from Buy by Ord Minnett .B/H/S: 2/5/0

Ord Minnett downgrades Woolworths Group to Accumulate from Buy and raises its target price to $39.00 from $33.00 following a stronger-than-expected 1H FY26 result.

Commentary highlights management upgraded guidance for Australian Food earnings growth to the top end of the mid-to-high single digit range.

The broker notes food like-for-like sales rose 5.8% y/y in the first seven weeks of 2H26, or up 7.2% excluding tobacco, while 1H cost growth was contained to 2%, which it describes as impressive.

Big W and New Zealand delivered 1H earnings ahead of forecasts despite softer early 2H trading, and sees potential for a turnaround in these divisions, though work remains.

The broker raises FY26/FY27/FY28 EPS forecasts by 6.3%/5.1%/6.1%. Ord Minnett believes execution momentum supports further earnings growth into FY28.

Total Recommendations	Recommendation Changes
Broker Recommendation Breakup <img alt="3dbar" src="https://www.fnarena.com/charts/fnarena/3dbar.php?mydata=1&mylabels=BellPotter,Citi,Macquarie,MorganStanley,Morgans,OrdMinnett,ShawandPartners,UBS&b0=238,151,189,102,265,268,170,151&h0=128,134,166,107,162,138,24,164&s0=9,28,37,53,29,39,5,31″ style=”border:1px solid #000000″>

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