Australian Broker Call

UBS rates AMP as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did, however, lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding AMP, stronger markets drive EPS upgrades by UBS and a higher target price of $1.85, up from $1.80. 

While a Neutral rating is maintained, the stock is becoming a more compelling FY26 story, suggests the broker.

Improving flows are noted as well as lower funding costs from the digital SME bank, further cost reduction potential, and scope for FY26 capital management.

Note: The above is a summary of research released by UBS last Friday.

Target price is $1.85 Current Price is $1.69 Difference: $0.16
If AMP meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates AOV as Buy (1) -

UBS highlights September 2025 new vehicle deliveries rose 7% y/y, showing early signs of interest rate tailwinds. Among segments, Prestige, up 14% y/y and luxury, up 11%, outperformed, aided by easier comps and solid m/m gains. 

BYD surged 178% y/y and is now the 8th largest OEM year-to-date. Overall, battery EVs jumped 170% y/y to a record 11% market share, led by Tesla and BYD.

The UBS index for Amotiv rose 1% y/y in September, and eased slightly on a m/m basis. The broker notes the comps will toughen through Nov-Dec 2025, limiting near term momentum, but will ease from Jan-Feb 2026, supporting potential rebound.

Buy. Target unchanged at $11.

Target price is $11.00 Current Price is $8.88 Difference: $2.12
If AOV meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $11.62, suggesting upside of 32.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates APE as Hold (3) -

On the back of the CanadaOne acquisition and the sale of a 20% stake in easyauto123 to Mitsubishi Corp, Bell Potter raises its EPS estimates by 7%-8% in 2026 and 2027 for Eagers Automotive.

EPS for 2025 downgraded by -4% due to assumed costs of -$18m and equity raising dilution.

The analyst assumes the acquisition is in place by February 2026, with some slight cost synergies assumed in 2027 and beyond.

Hold rating retained. Target rises to $31.25 from $24.

Target price is $31.25 Current Price is $33.80 Difference: minus $2.55 (current price is over target).
If APE meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.26, suggesting downside of -16.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates APE as Sell (5) -

UBS highlights September 2025 new vehicle deliveries rose 7% y/y, showing early signs of interest rate tailwinds. Among segments, Prestige, up 14% y/y and luxury, up 11%, outperformed, aided by easier comps and solid m/m gains. 

BYD surged 178% y/y and is now the 8th largest OEM year-to-date. Overall, battery EVs jumped 170% y/y to a record 11% market share, led by Tesla and BYD.

The UBS index for Eagers Automotive rose 26% y/y in September, with underlying core business excluding BYD down -1% y/y.

The broker reckons the implied 2H25 run-rate of 23% y/y is tracking modestly ahead of consensus driven by BYD.

Sell. Target rises to $18.70 from $17.00.

Target price is $18.70 Current Price is $33.80 Difference: minus $15.1 (current price is over target).
If APE meets the UBS target it will return approximately minus 45% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.26, suggesting downside of -16.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ARB as Neutral (3) -

UBS highlights September 2025 new vehicle deliveries rose 7% y/y, showing early signs of interest rate tailwinds. Among segments, Prestige, up 14% y/y and luxury, up 11%, outperformed, aided by easier comps and solid m/m gains. 

BYD surged 178% y/y and is now the 8th largest OEM year-to-date. Overall, battery EVs jumped 170% y/y to a record 11% market share, led by Tesla and BYD.

The UBS index for ARB Corp rose 2% y/y in September, and eased slightly on a m/m basis. The broker notes the comps will toughen Neutral. Target unchanged at $39.60.

Target price is $39.60 Current Price is $38.97 Difference: $0.63
If ARB meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $43.36, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ASG as Neutral (3) -

UBS highlights September 2025 new vehicle deliveries rose 7% y/y, showing early signs of interest rate tailwinds. Among segments, Prestige, up 14% y/y and luxury, up 11%, outperformed, aided by easier comps and solid m/m gains. 

BYD surged 178% y/y and is now the 8th largest OEM year-to-date. Overall, battery EVs jumped 170% y/y to a record 11% market share, led by Tesla and BYD.

The UBS index for Autosports Group rose 15% y/y in September, showing strong sequential momentum despite easier comparisons. Audi, Volvo, and Jaguar Land Rover grew by double-digits while super-luxury brands were the weakest performers.

The broker notes the current run-rate for 1H26 is tracking in line to slightly ahead of consensus expectations.

Neutral. Target unchanged at $3.15.

Target price is $3.15 Current Price is $3.34 Difference: minus $0.19 (current price is over target).
If ASG meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates BXB as Neutral (3) -

The UBS Evidence Lab Pallet User Survey 2025 for UK/Europe pointed to a slower top line outlook and rising price sensitivity. These trends mirrored the survey outcomes in the US.

UBS notes volume expectations are modest at 2.8% growth expected for FY26 with 3% pallet price growth, both down slightly from last year.

The survey showed pricing has overtaken availability as the top sourcing factor, pressuring Brambles' CHEP’s premium positioning and leading to weaker customer satisfaction.

Still, the broker is positive about earnings and free cash flow generating potential from new businesss wins, productivity, cost management and continued benefits from capex holiday.

Neutral. Target cut to $25.65 from $25.90 on forex mark-to-market and roll-forward.

This report was published Friday.

Target price is $25.65 Current Price is $24.80 Difference: $0.85
If BXB meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $26.78, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates CGF as Buy (1) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding Challenger, strong 1Q26 alternative investment returns raise the broker's FY26 statutory profit forecast by 19%, bolstering capital coverage ahead of favourable draft APRA annuity capital changes expected in 2Q26.

However, narrower credit spreads trim the normalised EPS outlook by -0.9%, notes the analyst. Target rises to $9.60 from $9.30. Buy maintained.

Note: The above is a summary of research released by UBS last Friday.

In further UBS research out today, it's noted Challenger has been mooted as a potential buyer of a stake in Pepper Money ((PPM)) in the media, which has a market capitalisation of $890m. KKR owns a majority stake.

UBS accepts the possible acquisition would grow Challenger's loan origination capacity, which would assist the development of its fixed income business arising from the proposed APRA revisions.

The analyst believes the market would be more positively disposed to regulatory capital releases being diverted into buybacks.

It's felt the acquisition of a stake in Pepper Money could put pressure on the share price.

Target price is $9.60 Current Price is $8.70 Difference: $0.9
If CGF meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.88, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates CSL as Buy (1) -

The US and CSL agreed on Most Favored Nation (MFN) pricing for Medicaid and future drugs, plus a US$70bn on shoring investment and Section 232 tariff exemption.

UBS notes the company's MFN exposure is limited to Medicaid which is around 10% of US sales, representing an estimated (and unmitigated) -4% impact (or -US$210m) to FY27 EBIT. This is sharply down from prior worst case scenario of -US$1.3bn risk.

The broker reckons direct-to-consumer MFN pricing is unlikely to affect CSL’s products. Additionally, the company could gain full Section 232 tariff exemption by investing US$1.5-2bn in its US fractionation facility, removing a potential  -13% EBIT drag.

Overall, MFN and tariff impacts are seen manageable with mid-single digit EBIT impact.

Buy. Target unchanged at $300.

This report was published Friday.

Target price is $300.00 Current Price is $207.79 Difference: $92.21
If CSL meets the UBS target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $276.82, suggesting upside of 35.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates DGT as Hold (3) -

Digico Infrastructure REIT announced new customer signings, primarily for DYD1, and also at Brisbane and Adelaide sites, across hyperscale, neocloud, enterprise, and government customers, Bell Potter notes.

FY26 guidance was proffered with earnings (EBITDA) of $120m-$125m and a DPS of 12c. Revenue recognition of new customer wins will be booked across 2H26, with growth capex of -$160m-$180m, up from -$100m-$120m flagged previously.

Contracted IT capacity is expected to rise to 41MW by June 2026 against 21MW as at FY25, and versus the previous target of 27MW for June 2026 for Australia.

Group billed IT capacity is anticipated to achieve at least 85MW, generating annualised earnings (EBITDA) of at least $180m by July 2026.

FY26 FFO forecast cut by -30% but FY27 lifted by 7%. No change to Hold rating. Target lifts to $3.20 from $3.

Target price is $3.20 Current Price is $3.05 Difference: $0.15
If DGT meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates DGT as Buy (1) -

UBS acknowledges several contracts signed by Digico Infrastructure REIT to reach a target of 41MW in Australia, up from the FY25 exit run rate of 21MW and the prior FY26 exit target of 27MW.

Customers span various segments from hyperscale, neocloud, enterprise, and government, with SYD1 now expected to grow to an additional 15MW from 9MW growth planned earlier.

Group billed IT capacity target was also raised by management to 85MW by July 2026 (US 44MW, Australia 41MW), which infers an annualised earnings (EBITDA) run rate of at least $180m by FY27 vs UBS/consensus forecasts at $179m.

The analyst is positive on the deals but raises concerns around the upgraded earnings being almost in line with current forecasts. In the broker's view, this suggests existing MW has been re-contracted at a lower rate and newly contracted EBITDA/MW is also lower.

Pending additional investigation, UBS retains its earnings forecasts with no change to Buy rating and $4.90 target.

Target price is $4.90 Current Price is $3.05 Difference: $1.85
If DGT meets the UBS target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates GQG as Buy (1) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding GQG Partners, UBS believes the stock remains an attractive market hedge and offers an attractive yield.

Buy. Unchanged $2.25 target.

Note: The above is a summary of research released by UBS last Friday.

Target price is $2.25 Current Price is $1.73 Difference: $0.52
If GQG meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $2.51, suggesting upside of 45.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates HUB as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding platforms, while Hub24's long-term market share potential is expected to exceed Netwealth Group's, UBS now prefers the latter as the recent de-rating appears to have fully priced in potential First Guardian remediation risks.

Netwealth Group has underperformed Hub24 by around -10% since its FY25 result, highlights the analyst.

Neutral maintained for Hub24. Target $112.

Note: The above is a summary of research released by UBS last Friday.

Target price is $112.00 Current Price is $102.87 Difference: $9.13
If HUB meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $104.59, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates ILU as Overweight (1) -

Following visits to Iluka Resources' Cataby and Eneabba mines, Morgan Stanley returned with a broadly positive view.

Cataby is a strong operating asset and Eneabba is a well-managed construction project, with both showcasing the company's rare earths strategy and execution capability, the broker highlights.

Construction is on budget at Eneabba with adequate contingency ($270m), though first NdPr output is delayed modestly and now expected in mid-2027 and heavies by end-2027.

Cataby has a highly flexible restart capability, the broker observes, with mine life extension potential beyond 2032, and lower-than-expected strip ratio (2:1 vs 4:1 est.) supporting improved cost outlook.

Overweight. Target unchanged at $6.40. Industry View: Attractive.

Target price is $6.40 Current Price is $7.10 Difference: minus $0.7 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.85, suggesting downside of -21.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates MFG as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding Magellan Financial, UBS notes flagship strategies delivered weak 1Q performance, with Global, Infrastructure and Airlie underperforming by -6%, -1% and -3% respectively.

Retail flows remain relatively resilient, aided by Vinva, highlights the broker, while management has been actively buying back shares through September. Unchanged $10.70 target and Neutral rating.

Note: The above is a summary of research released by UBS last Friday.

Target price is $10.70 Current Price is $10.06 Difference: $0.64
If MFG meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.41, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates MGR as Equal-weight (3) -

Morgan Stanley’s eighth Australian AlphaWise survey points to improving residential sentiment, reinforcing expectations Mirvac Group and Stockland residential sales volumes will rise over the next 12 months.

Average house price growth expectations of 6%, with 77% of respondents forecasting gains, mark the strongest reading in the survey’s history, highlights the broker. The First Home Guarantee is also expected to help sentiment.

The broker maintains a positive view on residential-exposed names, remaining Overweight Stockland, Overweight Gemlife Communities ((GLF)), and Equal-weight Mirvac Group.

Unchanged $2.45 target for Mirvac Group. Industry view: In Line.

Target price is $2.45 Current Price is $2.31 Difference: $0.14
If MGR meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates MQG as Equal-weight (3) -

Morgan Stanley highlights Macquarie Group as a "standout" play on data centres in its financials coverage.

The group has been investing in data centres globally for multiple years, and the sale of AirTrunk is estimated to have generated fees of $1.3bn.

US investments are noted as Netrality Data Centres and Aligned Data Centres, with the latter looking increasingly likely to contribute similar performance fees to AirTrunk.

Post the sale of 1.8GW capacity, Morgan Stanley estimates 7.7MW across Macquarie's funds and balance sheet, or just over four times AirTrunk's capacity. Additional, it is investing in adjacent infrastructure like fibre optics and communication towers.

Equal-weight rating and $226 target unchanged. Industry View: In-Line.

Target price is $226.00 Current Price is $224.93 Difference: $1.07
If MQG meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $223.77, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates NWL as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding platforms, while Hub24's long-term market share potential is expected to exceed Netwealth Group's, UBS now prefers the latter as the recent de-rating appears to have fully priced in potential First Guardian remediation risks.

Netwealth Group has underperformed Hub24 by around -10% since its FY25 result, highlights the analyst. Neutral maintained. Target falls to $33.50 from $35.00.

The group's client exposure to First Guardian is around $120m, with potential recoveries implying to UBS net client losses of roughly -$100m.

Note: The above is a summary of research released by UBS last Friday.

Target price is $33.50 Current Price is $30.39 Difference: $3.11
If NWL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $33.16, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates PNI as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding Pinnacle Investment Management, performance fees are cycling a strong prior period, with Hyperion starting 1Q26 softer, highlights the broker.

Despite rating downgrades and greater regulatory scrutiny, Metrics’ FUM remains resilient with limited outflows, notes UBS, while LifeCycle continues to scale, and management retains ample capacity for further M&A.

Target reduced to $19.80 from $23.00. Unchanged Neutral rating.

Note: This is a summary of research released by UBS last Friday.

Target price is $19.80 Current Price is $18.55 Difference: $1.25
If PNI meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $24.23, suggesting upside of 30.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates PPT as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding Perpetual, UBS feels the stock is oversold post-result, given support via positive asset management revisions and a near-term catalyst from the pending Wealth Management sale. Unchanged Neutral rating and $22.20 target.

Note: This is a summary of research released by UBS last Friday.

Target price is $22.50 Current Price is $20.15 Difference: $2.35
If PPT meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $22.27, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates PTM as Neutral (3) -

September 2025 funds under management (FUM) revisions were positive across the UBS wealth coverage, supported by strong equity markets. Sector share prices did however lag due to investment underperformance and ongoing regulatory risks, notes the analyst.

Preferred exposures remain GQG Partners and Challenger. The broker also highlights several names such as Netwealth, Pinnacle Investment Management, and Perpetual, which are beginning to look more attractive following share price pullbacks.

Regarding Platinum Asset Management, the broker notes the merger with L1 completed on October 1, with stronger markets prompting modest EPS upgrades.

The analyst remains cautious given execution risks around cost synergies and integration costs, along with potential outflows from the company's existing operations. Neutral. Target 79 cents.

Note: This is a summary of research released by UBS last Friday.

Target price is $0.79 Current Price is $0.70 Difference: $0.095
If PTM meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates QBE as Buy (1) -

UBS observes the 2025 hurricane season has reflected lower activity than the historical norm, based on data going back to 1851.

QBE Insurance is due to update the market on 2H2025 CAT costs to October at its November 27 update. The analyst views upside risks to EPS forecasts for 2025, offset by possible rate weakening across RI & Property classes in FY26.

Buy rated. Target price $24.70.

Target price is $24.70 Current Price is $20.81 Difference: $3.89
If QBE meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $24.49, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SDF as Buy (1) -

M&A activity among large US agency networks is set to rise, with Renaissance targeting smaller acquisitions to build scale and improve competitiveness, highlights UBS.

ISU Steadfast, the group's US-based insurance broker network, has lowered its membership threshold to $250k, broadening participation and flexibility across its 40-state network, notes UBS.

The broker highlights Steadfast's ISU network is well positioned for further consolidation.

While FY26 M&A guidance is yet to be provided, greater US expansion appears likely following the Novum Underwriting Partners acquisition, in the broker's view.

UBS sees ongoing US M&A as a key catalyst to restore Steadfast's valuation premium. Buy. Target $7.00.

Target price is $7.00 Current Price is $6.05 Difference: $0.95
If SDF meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.85, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates SGP as Overweight (1) -

Morgan Stanley’s eighth Australian AlphaWise survey points to improving residential sentiment, reinforcing expectations Mirvac Group and Stockland residential sales volumes will rise over the next 12 months.

Average house price growth expectations of 6%, with 77% of respondents forecasting gains, mark the strongest reading in the survey’s history, highlights the broker. The First Home Guarantee is also expected to help sentiment.

The broker maintains a positive view on residential-exposed names, remaining Overweight Stockland, Overweight Gemlife Communities ((GLF)), and Equal-weight Mirvac Group.

Unchanged $6.90 target for Stockland. Industry view: In Line.

Target price is $6.90 Current Price is $6.18 Difference: $0.72
If SGP meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SHV as Buy (1) -

UBS views Select Harvests' trading update as better than feared, noting the share price weakness relates to a recent upward revision in the Californian crop expectations from California Objective Est in July.

This now appears overly optimistic given the growers' challenges.

Almond prices for FY25 have been lowered to $10.14-10.20/kg from $10.35/kg, with minimal impact as most of the crop had been priced before the fall and prices have recovered into year end, the analyst explains.

UBS anticipated earnings for FY26 to rise by 35% to $117m, leaving forecasts unchanged on the back of expected 20% growth in volume to 29.6mt and a pickup in 3P processing volumes. This is expected add a further $10m in earnings (EBITDA).

Unchanged Buy rating and $5.30 target.

Target price is $5.30 Current Price is $4.01 Difference: $1.29
If SHV meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 43.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources