Australian Broker Call

Bell Potter rates 360 as Buy (1) -

Bell Potter notes Life360's 1Q26 result exceeded expectations across revenue and earnings, driven by strong paying circle growth, though growth in monthly active users (MAU) disappointed due to technical issues.

Revenue and earnings guidance for FY26 were upgraded, while MAU growth guidance was lowered, reflecting a slower near-term trajectory, the analysts explain.

Upgrades to revenue and paying circle assumptions are offset by softer MAU expectations.

Bell Potter lowers its target to $32.50 from $35.50 but retains a Buy rating, expecting sequential improvement through the year.

Target price is $32.50 Current Price is $17.92 Difference: $14.58
If 360 meets the Bell Potter target it will return approximately 81% (excluding dividends, fees and charges).

Current consensus price target is $30.34, suggesting upside of 61.7% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Citi rates 360 as Buy (1) -

Citi has increased confidence in Life360's paying circle momentum following its post-result meeting, with upside seen to subscription revenue.

While near-term monthly active user (MAU) trends remain uncertain and the top end of guidance appears optimistic, the broker views expanding functionality into broader family use cases.

Subscription tracking, non-driving features, and monitoring pets and the elderly are seen as supportive of medium-term MAU growth.

Buy rating. Target $32.10.

The broker's initial research yesterday is summarised below.

At first glance, Citi notes today's 1Q result by Life360 beat expectations. Adjusted earnings of US$17m exceeded the consensus forecast by 16%, driven by stronger-than-expected revenue, particularly from advertising, the analysts note.

FY26 revenue and earnings guidance were modestly upgraded.

The broker's key highlight was record Paying Circles growth, up 27% year-on-year to 3.0m, alongside solid average revenue per paying circle (ARPPC) and annualised monthly revenue growth.

Advertising revenue also beat Citi's forecast by 8%.

In contrast, commentary notes monthly active user (MAU) growth disappointed due to technical issues, management explained, particularly on Google Play, prompting a downgrade to full-year MAU guidance.

Citi is surprised management did not guide MAU growth further toward the lower end of the 17%-20% revised range from 20%, given ongoing uncertainty in Other International markets.

Margins are also expected to soften in 2Q due to hardware losses.

Target price is $32.10 Current Price is $17.92 Difference: $14.18
If 360 meets the Citi target it will return approximately 79% (excluding dividends, fees and charges).

Current consensus price target is $30.34, suggesting upside of 61.7% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates 360 as Outperform (1) -

Macquarie highlights strong 1Q Paying Circles growth for Life360 despite softer monthly active user (MAU) trends, with conversion improving even amid Android-related onboarding issues.

Resolution of these issues is expected to support growth through FY26, while advertising presents upside, supported by Nativo integration and improving customer spend, the analyst explains.

The broker's earnings forecasts are modestly upgraded, reflecting stronger subscription growth and operating leverage.

Macquarie lifts its target by 2.8% to $33.10 and retains an Outperform rating, citing an attractive valuation and asymmetric risk profile with upside to FY26 guidance.

Target price is $33.10 Current Price is $17.92 Difference: $15.18
If 360 meets the Macquarie target it will return approximately 85% (excluding dividends, fees and charges).

Current consensus price target is $30.34, suggesting upside of 61.7% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

Morgan Stanley makes minor revisions after Life360's update, lifting EBITDA estimates by 1-2% for 2026 and EPS by 1-3% for 2026-28. Amid Australian dollar appreciation, the target is lowered to $27 from $30, with lower MAU impacting growth beyond 2028.

The broker notes conversion has consistently improved, and while the first quarter may be overstated, sustaining around 200,000 additional subscribers per quarter still appears realistic.

Morgan Stanley argues that the company is not growing in a "parallel universe - this one has bumps". Overweight. Industry view: In Line.

Target price is $27.00 Current Price is $17.92 Difference: $9.08
If 360 meets the Morgan Stanley target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $30.34, suggesting upside of 61.7% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Ord Minnett rates 360 as Buy (1) -

Life360's March-quarter revenue and operating earnings came in modestly ahead of consensus forecasts, though Ord Minnett notes a downgrade to 2026 monthly active user (MAU) guidance drove a sharp share price decline.

MAU growth is now forecast at between 17%-20%, down from 20% previously. Execution risk around this guidance is highlighted given weak recent additions and ambitious second-half targets.

While market focus may eventually shift toward revenue, earnings and paying subscribers, Ord Minnett suggests MAUs remain the market's key focus for now.

While reducing its EPS forecasts, Ord Minnett retains a Buy rating with a $27.00 target.

Target price is $27.00 Current Price is $17.92 Difference: $9.08
If 360 meets the Ord Minnett target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $30.34, suggesting upside of 61.7% (ex-dividends)

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: 1.0

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

Macquarie rates ALD as Outperform (1) -

Macquarie discusses the potential implications for the Federal Budget on Ampol and Viva Energy ((VEA)).

No indication was offered that the -32c/l discount on petrol and diesel would be extended post the three month period.

The government is establishing a Fuel Security Reserve ($3.2bn) to raise the long-term fuel supply and storage with an increase in the minimum stockholding obligation to 50-days. The analyst expects the details will be tied to FSSP phase 2 reforms.

Target $40.80. Outperform rating maintained. EPS tweaked slightly higher for FY26.

Viva is also Outperform rated with an unchanged target of $3.30.

Target price is $40.80 Current Price is $33.61 Difference: $7.19
If ALD meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $37.27, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates ALL as Buy (1) -

In a flash update, Citi notes Aristocrat Leisure announced 1H26 group earnings (EBITA) which was 1% better than consensus and 3% above its own forecast.

The result was supported by a $45m litigation expense recovery, resulting in the operating earnings (EBITA) missing consensus by around -3%, though in line with the broker's forecast.

Gaming missed by -1%, Product Madness by -7% and Interactive by -4% against consensus expectations. Management flagged net adds to be at the top end of guidance, 4000-5000 units for FY26.

A 50c dividend per share was above consensus at 47.5c and an extension of the $1bn share buy back was announced. The stock is expected to trade down.

Unchanged $65 target.

Target price is $65.00 Current Price is $45.85 Difference: $19.15
If ALL meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $63.67, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates ANZ as Buy (1) -

With implications for Australian banks, Citi expects Budget 2026 housing tax changes to dampen investor activity, with restrictions on negative gearing and CGT reforms likely to slow turnover in existing housing and reduce investor credit growth.

While demand may shift toward new builds, overall housing credit is forecast to slow to around 5% in FY27 from 7%, with downside risks if sentiment weakens further amid rising rates and costs.

Banks may benefit marginally from the increased appeal of income returns, though Citi remains cautious on the sector.

Preferences remain ANZ Bank ((ANZ)) with a Buy rating, Westpac ((WBC)) at Neutral, while both National Australia Bank ((NAB)) and CommBank ((CBA)) are rated Sell.

Target price is $40.00 Current Price is $35.14 Difference: $4.86
If ANZ meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $35.18, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.2

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

Citi rates AX1 as Neutral (3) -

Ahead of the investor briefing, Accent Group has published longer-term targets for sales, store numbers and EBIT margin. The biggest surprise for Citi is the EBIT margin which indicates the focus is pivoting to optimisation and away from growth.

The broker also suspects, in an initial assessment, there is potential for consensus upgrades to EBIT in FY27 of at least 5%, given new information on cost reductions.

Citi also asserts the company will need to reassure investors that its material cost reductions will not adversely impact the consumer or company culture. Neutral rating and $0.57 target.

Target price is $0.57 Current Price is $0.56 Difference: $0.01
If AX1 meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.66, suggesting upside of 15.8% (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

Macquarie rates BAP as Neutral (3) -

After a period of research restriction, Macquarie has resumed coverage of Bapcor with a Neutral rating and 61c target.

The company has secured around $200m in equity funding which the analyst expects to improve financial flexibility. Net debt is anticipated by management to come down to around 1.2x-1.5x by June 2026 from 1.7x at December 2025.

Sales fell around -2% to -6% across the company's four divisions in 1H26 with growth expected by management to return over 2H26, underpinned by lower staff turnover, better competitive pricing and other measures.

EPS forecasts are cut by around -73% for FY26 and -72% for FY27 including the equity dilution from share capital raised.

Target price is $0.61 Current Price is $0.55 Difference: $0.06
If BAP meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $0.63, suggesting upside of 21.2% (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

Macquarie rates BEN as Underperform (5) -

Macquarie expects Federal Budget changes to capital gains tax and negative gearing to reduce the attractiveness of property investment, potentially weighing on Australian banks.

The analyst estimates borrowing power by investors will be reduced by -10%-20% and holding costs could more than double.

The broker sees downside risks to house prices and a likely slowdown in credit growth, with housing credit potentially easing to around 4%-5% from 7%.

While new housing exemptions may provide some offset, this is expected to be modest.

Macquarie warns slower housing activity could weigh on bank earnings and share price performance.

Separately, the permanent $20,000 instant asset write-off may support business credit. There's also eased regulation for smaller banks, the broker explains.

The latter includes higher covered bond caps which are expected to benefit Bendigo & Adelaide Bank, Bank of Queensland and Judo Capital.

Unchanged Underperform rating and $9.75 target for Bendigo & Adelaide Bank.

Target price is $9.75 Current Price is $10.40 Difference: minus $0.65 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.67, suggesting upside of 3.9% (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

Macquarie rates BOQ as Underperform (5) -

Macquarie expects Federal Budget changes to capital gains tax and negative gearing to reduce the attractiveness of property investment, potentially weighing on Australian banks.

The analyst estimates borrowing power by investors will be reduced by -10%-20% and holding costs could more than double.

The broker sees downside risks to house prices and a likely slowdown in credit growth, with housing credit potentially easing to around 4%-5% from 7%.

While new housing exemptions may provide some offset, this is expected to be modest.

Macquarie warns slower housing activity could weigh on bank earnings and share price performance.

Separately, the permanent $20,000 instant asset write-off may support business credit. There's also eased regulation for smaller banks, the broker explains.

The latter includes higher covered bond caps which are expected to benefit Bendigo & Adelaide Bank, Bank of Queensland and Judo Capital.

Unchanged Underperform rating and $5.70 target for Bank of Queensland.

Target price is $5.70 Current Price is $6.19 Difference: minus $0.49 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.55, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.3

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

Citi rates BRG as Buy (1) -

Citi notes De'Longhi's 1Q26 result indicated further strengthening of the coffee segment including mid-single-digit organic growth in the Americas household market.

The strength in the coffee machine market offset the weakness in the blender market.

De'Longhi management reiterated 2026 guidance and as such Citi envisages minimal risk to Breville Group's FY26 earnings guidance.

The sales trend from De'Longhi inferred the consumer had not deteriorated in April. Group wide, the coffee segment advanced at low end single digits at constant FX with growth in manual machines -- a positive for Breville.

Target $39.85. Buy.

Target price is $39.85 Current Price is $27.91 Difference: $11.94
If BRG meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $38.17, suggesting upside of 31.3% (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

Citi rates CBA as Sell (5) -

CommBank announced 3Q26 net profit after tax of $2.7bn which came in -2% below Citi's forecast and the run rate implied by consensus.

Core earnings seemed to align with expectations along with underlying credit. Losses declined over the period.

Both revenue and costs came in marginally lower than expectations, although there were two fewer days in the quarter. NIM was stable.

Citi notes the BDD charge of -$316m was ahead of its forecast of -$215m and implied consensus estimate of around -$250m.

The $140 target and Sell rating are maintained for CommBank. No changes to EPS estimates.

Target price is $140.00 Current Price is $171.57 Difference: minus $31.57 (current price is over target).
If CBA meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $127.04, suggesting downside of -17.5% (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

Macquarie rates CBA as Underperform (5) -

Macquarie expects Federal Budget changes to capital gains tax and negative gearing to reduce the attractiveness of property investment, potentially weighing on Australian banks.

The analyst estimates borrowing power by investors will be reduced by -10%-20% and holding costs could more than double.

The broker sees downside risks to house prices and a likely slowdown in credit growth, with housing credit potentially easing to around 4%-5% from 7%.

While new housing exemptions may provide some offset, this is expected to be modest.

Macquarie warns slower housing activity could weigh on bank earnings and share price performance.

Underperform rating and $117 target maintained for CommBank.

Target price is $117.00 Current Price is $171.57 Difference: minus $54.57 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $127.04, suggesting downside of -17.5% (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

Morgan Stanley rates CBA as Underweight (5) -

On balance, Morgan Stanley believes the new measures in the Commonwealth budget create more downside risk for banks' trading multiples.

Recent interest-rate hikes, the budget and the global energy shock have created a significant shift in the bank operating environment, increasing the risk of earnings downgrades and a de-rating.

The budget is expected to have a negative impact on housing market sentiment and the mortgage market, in the broker's opinion, which will more than offset any increase in the appeal of high yield stocks.

Changes to property-related tax concessions could have a "profound effect on the long term demand for investment properties", Morgan Stanley adds.

Commonwealth Bank and Westpac ((WBC)) are likely to be more affected by a shift in housing/mortgage market conditions compared with the other majors, while National Australia Bank ((NAB)) is more vulnerable to a shift in broader operating conditions.

Underweight rating retained. Industry view: Cautious. Target is $131.

Target price is $131.00 Current Price is $171.57 Difference: minus $40.57 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $127.04, suggesting downside of -17.5% (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

UBS rates CBA as Sell (5) -

At first glance, UBS notes CommBank's 3Q26 trading update was below consensus on net interest income and cash net profit after tax as well as an 8bps rise in collective provisions lifting the CLR by 12bps (consumer lending risk).

Costs were in line with, and lending rose some 6% y/y. Capital was slightly softer at 11.56% post 1H26 dividend.

The analyst highlights the bank remains "laser focused" on its balance sheet and ongoing earnings stability. The underlying business remains robust and is advancing above the system in business lending and above the system in mortgages.

The stock remains Sell rated with a $130 target despite the conservative operating and balance sheet metrics.

Target price is $130.00 Current Price is $171.57 Difference: minus $41.57 (current price is over target).
If CBA meets the UBS target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $127.04, suggesting downside of -17.5% (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

Morgan Stanley rates CHC as Overweight (1) -

Morgan Stanley observes Charter Hall, which runs professionally managed vehicles, could gain an advantage from the latest Commonwealth budget.

There will be a 30% minimum tax on discretionary trusts from July 2028 which could make the widely held trusts such as the company's managed funds appear attractive.

On the other hand, the removal of the capital gains tax discount could raise issues upon exit of properties or units.

Target $26.89. Overweight. Industry View: In-Line.

Target price is $26.89 Current Price is $19.41 Difference: $7.48
If CHC meets the Morgan Stanley target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $23.56, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Macquarie rates COL as Outperform (1) -

Macquarie's High Frequency Consumer Data indicates weak consumer spending trends in April, with most categories softening as sentiment deteriorates.

Alcohol (on- and off-premise) and furniture showed the sharpest declines, while electronics was the only major category to record sequential improvement.

Pharmacy continues to grow, the broker highlights, albeit at a slower pace, with signs of increasing competitive divergence.

Macquarie highlights Coles Group for defensive positioning, with longer-term upside seen in JB Hi-Fi and Wesfarmers, while weaker trends are a negative for Endeavour Group.

The Coles Group target is $23.80. Outperform.

Target price is $23.80 Current Price is $20.97 Difference: $2.83
If COL meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $23.81, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.7

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

Bell Potter rates EBR as Buy (1) -

EBR Systems' 1Q26 showed strong commercial progress, according to Bell Potter, with sales doubling quarter-on-quarter and key operating metrics, including unit volumes and hospital contracts, trending positively.

Gross margins remain low due to early-stage commercialisation and legacy inventory, the analysts explain. Improvement is expected from 3Q26 with a new manufacturing facility and scaling benefits.

Cash burn increased, leaving around two quarters of funding, though some outflows were one-off, the broker observes.

Bell Potter retains a Buy rating and $2.00 target, expecting operating losses to peak and sentiment to improve once funding uncertainty is resolved.

Target price is $2.00 Current Price is $0.53 Difference: $1.475
If EBR meets the Bell Potter target it will return approximately 281% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates EDV as Underperform (5) -

Macquarie's High Frequency Consumer Data indicates weak consumer spending trends in April, with most categories softening as sentiment deteriorates.

Alcohol (on- and off-premise) and furniture showed the sharpest declines, while electronics was the only major category to record sequential improvement.

Pharmacy continues to grow, the broker highlights, albeit at a slower pace, with signs of increasing competitive divergence.

Macquarie highlights Coles Group for defensive positioning, with longer-term upside seen in JB Hi-Fi and Wesfarmers, while weaker trends are a negative for Endeavour Group.

Underperform rating and $3.40 target maintained for Endeavour Group.

Target price is $3.40 Current Price is $3.22 Difference: $0.18
If EDV meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 6.9% (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

Macquarie rates ELV as Downgrade to Neutral from Outperform (3) -

Elevra Lithium's revised North American Lithium (NAL) project expansion study outlines a staged development plan with earlier-than-expected production and unchanged capex, Macquarie highlights.

A $441m financing package provides funding certainty, in the analyst's view, supporting both the NAL expansion and Moblan Lithium project development activities.

Production is expected to increase modestly post-expansion, with staged delivery reducing execution risk.

Macquarie lifts its target to $13.50 from $11.60 but downgrades to Neutral from Outperform following recent share price strength.

Target price is $13.50 Current Price is $13.74 Difference: minus $0.24 (current price is over target).
If ELV meets the Macquarie target it will return approximately minus 2% (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: 0.0

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

Morgan Stanley rates GDG as Overweight (1) -

Morgan Stanley asserts investment bonds become relatively more attractive after the Commonwealth budget and this confirmation may be what many advisers were awaiting before taking action.

Generation Development is a market leader in this area and will be a clear beneficiary of tax changes as the budget weakens two important competing tax structures for affluent investors, such as the current capital gains tax discount and discretionary trusts.

The broker understands investment bonds will become increasingly attractive compared with other structures from FY28 and the business is exceptionally well placed because Generation Life achieved 60% of industry net inflows in the 12 months to September 2025.

Target is steady at $6.40. Overweight retained. Industry view: In Line.

Target price is $6.40 Current Price is $3.96 Difference: $2.44
If GDG meets the Morgan Stanley target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $6.26, suggesting upside of 48.3% (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

Macquarie rates GMG as Outperform (1) -

Macquarie assesses the 2026/27 Commonwealth budget has introduced material housing tax reform, replacing the 50% capital gains discount with indexation and limiting negative gearing to new builds only.

The broker believes reduced investor activity is likely to lead to weaker housing turnover. Industrial exposures such as Goodman Group remain structural beneficiaries.

The target is $32.03. Outperform rating maintained.

Target price is $32.03 Current Price is $30.87 Difference: $1.16
If GMG meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $34.42, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Macquarie rates GQG as Neutral (3) -

Macquarie notes from GQG Partners' update yesterday, 1Q26 DPS of US3.54cps exceeded expectation, implying robust margins supported by stronger fee outcomes and cost discipline.

Funds under management (FUM) held up well, in the analyst's opinion, with April levels ahead of the consensus estimate, while net outflows stabilised following earlier weakness.

The broker's earnings forecasts are upgraded modestly, reflecting stronger FUM and margin assumptions, and the target is lifted to $1.65 from $1.60.

Despite improved near-term metrics, Macquarie retains a Neutral rating, citing ongoing concerns around long-term fund performance and flow sustainability.

Target price is $1.65 Current Price is $1.56 Difference: $0.095
If GQG meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Citi rates IAG as Buy (1) -

Citi reviews Insurance Australia Group's refreshed strategy and 2030 targets, with a high single-digit EPS growth outlook.

The latter is underpinned by a greater than 15% insurance margin and around 6% annual gross written premium (GWP) growth.

The broker views these targets as achievable given strong reinsurance protection and margin resilience, with potential upside from perils outcomes and quota share profit commissions.

Management is targeting more than $25bn in GWP by 2030, implying to the analysts steady organic growth broadly in line with system trends.

Citi modestly upgrades its forecasts and lifts its target by 20c to $8.50, retaining a Buy rating.

Target price is $8.50 Current Price is $7.46 Difference: $1.04
If IAG meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.23, suggesting upside of 8.4% (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 IAG as Buy (1) -

Insurance Australia Group announced its new Ambition 2030 strategy aiming to grow gross written premium mid-single digit and raise its insurance trading ratio margin to 15%-plus.

UBS notes the new targets are dependent on the insurer retaining market share, which is an essential aspect of preparing for agentic AI disruption.

Gross written premium target of $25bn-plus infer around 5.4% p.a. underlying growth from FY26-FY30. Australia is anticipated to grow by 6% p.a. and NZ by 5% p.a.

The broker views there to be upside to consensus EPS forecasts and retains an "undemanding" multiple of 15.1x FY27 earnings, a discount of some -11% to the stock's historical valuation.

Insurance Australia Group remains the top pick for UBS across Australian general insurance. Buy rated. Target rises to $8.80 from $8.70.

Target price is $8.80 Current Price is $7.46 Difference: $1.34
If IAG meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $8.23, suggesting upside of 8.4% (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

Macquarie rates IFT as Outperform (1) -

Macquarie raises its target for Infratil by 26% to NZ$17.15 following a major CDC Data Centres contract and updated FY29 earnings run-rate guidance.

CDC's valuation increases materially on a stronger demand outlook, the analyst explains, driven by accelerating AI-related data centre requirements and favourable cost dynamics in Australia.

Management notes geopolitical tensions in the Middle East have significantly increased demand for data centre capacity in Australia, where build costs are around -40% lower than in many parts of the US, partly due to tariff impacts.

Higher long-term market share and capacity expansion are assumed, supporting upgrades to the broker's earnings forecasts from FY28 onwards.

Macquarie retains an Outperform rating, citing positive momentum across key catalysts and continued upside from CDC's growth trajectory.

Current Price is $12.59. Target price not assessed.

Current consensus price target is $12.09, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Bell Potter rates ING as Hold (3) -

Management at Inghams Group's investor day reaffirmed FY26 earnings (EBITDAL) guidance of $180m-$200m, implying to Bell Potter strong underlying performance prior to fuel cost headwinds.

Cost-out initiatives and solid 3Q volumes underpin earnings, in the analysts' view. Further benefits are expected from strategic initiatives targeting over $160m in earnings gains over FY26-FY28.

Commentary points to inflationary pressures across feed, logistics and packaging in FY27, though mitigation from efficiency programs is expected.

The target price is raised by 10c to $2.10. Bell Potter retains a Hold rating, citing balanced risks.

Target price is $2.10 Current Price is $1.96 Difference: $0.145
If ING meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.40, suggesting upside of 24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Macquarie rates JBH as Outperform (1) -

Macquarie's High Frequency Consumer Data indicates weak consumer spending trends in April, with most categories softening as sentiment deteriorates.

Alcohol (on- and off-premise) and furniture showed the sharpest declines, while electronics was the only major category to record sequential improvement.

Pharmacy continues to grow, the broker highlights, albeit at a slower pace, with signs of increasing competitive divergence.

Macquarie highlights Coles Group for defensive positioning, with longer-term upside seen in JB Hi-Fi and Wesfarmers, while weaker trends are a negative for Endeavour Group.

Outperform rating and $106 target maintained for JB Hi-Fi.

Target price is $106.00 Current Price is $70.00 Difference: $36
If JBH meets the Macquarie target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $86.66, suggesting upside of 21.0% (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

Macquarie rates JDO as Outperform (1) -

Macquarie expects Federal Budget changes to capital gains tax and negative gearing to reduce the attractiveness of property investment, potentially weighing on Australian banks.

The analyst estimates borrowing power by investors will be reduced by -10%-20% and holding costs could more than double.

The broker sees downside risks to house prices and a likely slowdown in credit growth, with housing credit potentially easing to around 4%-5% from 7%.

While new housing exemptions may provide some offset, this is expected to be modest.

Macquarie warns slower housing activity could weigh on bank earnings and share price performance.

Separately, the permanent $20,000 instant asset write-off may support business credit. There's also eased regulation for smaller banks, the broker explains.

The latter includes higher covered bond caps which are expected to benefit Bendigo & Adelaide Bank, Bank of Queensland and Judo Capital.

Unchanged Outperform rating and $1.85 target for Judo Capital.

Target price is $1.85 Current Price is $1.39 Difference: $0.465
If JDO meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 53.8% (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

Citi rates MGR as Neutral (3) -

Citi expects the proposed tax changes in the Federal Budget to support residential developers over the medium term, as incentives for new housing are likely to shift investor demand toward new builds.

On the flipside, near-term headwinds are anticipated, including weaker investor sentiment from changes to negative gearing, softer house prices affecting volumes and pricing, and ongoing cost pressures.

Higher construction costs combined with weaker pricing are expected to compress margins in the short term.

Citi remains Neutral-rated on Mirvac Group with an unchanged $1.84 target.

Target price is $1.84 Current Price is $1.66 Difference: $0.185
If MGR meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Morgan Stanley rates MMS as Overweight (1) -

Morgan Stanley notes the Commonwealth budget has included reforms to rein in NDIS spending as anticipated, with total participants likely to be reduced given new eligibility requirements.

There was no mention of administration fees but it had been previously reported that spending on third-party intermediaries would drop -30%.

The effects are likely to be mitigated by industry consolidation and being an approved provider of the government's list so the broker assesses the risk for McMillan Shakespeare is the need to be included on this panel.

Uncertainty may weigh on the share price, although this is only a small portion of the company's business, the broker adds.

Overweight and $19.00 target retained. Industry view: In Line.

Target price is $19.00 Current Price is $17.65 Difference: $1.35
If MMS meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $19.40, suggesting upside of 14.8% (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

Morgan Stanley rates NAB as Underweight (5) -

On balance, Morgan Stanley believes the new measures in the Commonwealth budget create more downside risk for banks' trading multiples.

Recent interest-rate hikes, the budget and the global energy shock have created a significant shift in the banks' operating environment, increasing the risk of earnings downgrades and a de-rating.

The budget is expected to have a negative impact on housing market sentiment and the mortgage market, in the broker's opinion, which will more than offset any increase in the appeal of high yield stocks.

Changes to property-related tax concessions could have a "profound effect on the long term demand for investment properties", Morgan Stanley adds.

National Australia Bank is considered more vulnerable to a shift in broader operating conditions, while Commonwealth Bank ((CBA)) and Westpac ((WBC)) are likely to be more affected by a shift in housing/mortgage market conditions.

Underweight. The target price is $37.20. Industry view: Cautious.

Target price is $37.20 Current Price is $37.42 Difference: minus $0.22 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.76, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.3

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

UBS rates NAB as Buy (1) -

UBS' initial assessment of the Budget on the banks explains it is "early days" in terms of how the tax changes will alter investment markets, the outlook for the banking sector and how management strategies will evolve on lending and housing flows.

From a top-down 'high level' approach, the relative winners are likely to be banks with more robust business and institutional banking franchises, notably National Australia Bank and ANZ Bank ((ANZ)), with less reliance on investor mortgages, notably CommBank ((CBA)) and Westpac ((WBC)).

Unknowns that can impact investor funds flow include the appetite for higher dividend yield stocks and any asset allocation or portfolio rebalancing.

The analyst highlights bank stocks are down around -12% over the last month, with the market likely to have been pricing in concerns around the Budget.

National Australia Bank is Buy rated with a $48.50 target.

Target price is $48.50 Current Price is $37.42 Difference: $11.08
If NAB meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $39.76, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.3

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

Macquarie rates NCK as Outperform (1) -

Macquarie's High Frequency Consumer Data indicates weak consumer spending trends in April, with most categories softening as sentiment deteriorates.

Alcohol (on- and off-premise) and furniture showed the sharpest declines, while electronics was the only major category to record sequential improvement.

Pharmacy continues to grow, the broker highlights, albeit at a slower pace, with signs of increasing competitive divergence.

Macquarie highlights Coles Group for defensive positioning, with longer-term upside seen in JB Hi-Fi and Wesfarmers, while weaker trends are a negative for Endeavour Group.

Among small and mid-cap stocks, it's noted Nick Scali and Temple & Webster are experiencing slowing furniture demand, with potential for further moderation.

Outperform rating and $21.60 target retained for Nick Scali.

Target price is $21.60 Current Price is $14.44 Difference: $7.16
If NCK meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $20.20, suggesting upside of 44.0% (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

Macquarie rates ORG as Neutral (3) -

Macquarie highlights Origin Energy's recent oil hedging reflects increased "balance sheet insurance," though timing ahead of the Iran conflict was unfavourable and highlights challenges in Energy Markets.

The broker expects flat Energy Markets earnings in FY27, with battery gains offset by weaker power prices, a risk extending into FY28.

Positives include improved APLNG pricing and stronger cash flow from deferred debt amortisation, supporting dividends, in the analyst's view.

Macquarie retains a Neutral rating with an unchanged $11.25 target, citing balanced risks across the portfolio.

Target price is $11.25 Current Price is $11.62 Difference: minus $0.37 (current price is over target).
If ORG meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.01, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.2

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

Morgan Stanley rates RHC as Underweight (5) -

The Australian government, in its budget, has announced a reduction in the private health insurance rebate for those aged over 65.

Morgan Stanley estimates this change potentially provides a -1% headwind for private hospital episodes, which is relevant to Ramsay Health Care.

Target is $32.90. Underweight rating. In-Line industry view.

Target price is $32.90 Current Price is $36.83 Difference: minus $3.93 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.86, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.2

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

Macquarie rates SCG as Neutral (3) -

Macquarie assesses the 2026/27 Commonwealth budget has introduced material housing tax reform, replacing the 50% capital gains discount with indexation and limiting negative gearing to new builds only.

The broker believes reduced investor activity is likely to lead to weaker housing turnover. The impact on consumers could be neutralised through ongoing tax cuts, fuel excise relief and subsidies for energy and healthcare. This is considered to have a neutral impact on Scentre Group.

Target is $3.23. Neutral rating maintained.

Target price is $3.23 Current Price is $3.62 Difference: minus $0.39 (current price is over target).
If SCG meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.96, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates SGP as Neutral (3) -

Citi expects the proposed tax changes in the Federal Budget to support residential developers over the medium term, as incentives for new housing are likely to shift investor demand toward new builds.

New builds are defined as properties constructed on vacant land or where an existing property is demolished and replaced with more dwellings. Knockdown rebuilds and major renovations are excluded as they do not increase housing supply.

On the flipside, near-term headwinds are anticipated, including weaker investor sentiment from changes to negative gearing, softer house prices affecting volumes and pricing, and ongoing cost pressures.

Higher construction costs combined with weaker pricing are expected to compress margins in the short term.

Citi remains Neutral-rated on Stockland with an unchanged $4.30 target.

Target price is $4.30 Current Price is $3.83 Difference: $0.47
If SGP meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 19.6% (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

Macquarie rates SGP as Outperform (1) -

Macquarie assesses the 2026/27 Commonwealth budget as introducing material housing tax reform, replacing the 50% capital gains discount with indexation and limiting negative gearing to new builds only.

The broker believes there is further downside risk for Stockland and Mirvac ((MGR)), despite consensus cutting earnings estimates since October 2025. Reduced investor activity is likely to lead to weaker housing turnover, Macquarie asserts.

Outperform. Target $4.42.

Target price is $4.42 Current Price is $3.83 Difference: $0.59
If SGP meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 19.6% (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

Ord Minnett rates SHA as Buy (1) -

Shape Australia's FY26 revenue and profit guidance was slightly above Ord Minnett's expectation at the midpoint, supported by strong project momentum and a record $1.16bn in wins year-to-date.

Management is guiding to revenue between $1,175m-$1,225m and profit of $30m-$32m.

The growing orderbook provides exposure to key sectors including education, data centres and aged care, the analyst highlights, with upside potential in the modular segment if current momentum continues.

Industry conditions in data centres remain favourable, in the broker's view, with rising complexity and supply constraints benefiting experienced contractors.

Ord Minnett raises its target by 25c to $8.50 and retains a Buy rating.

Target price is $8.50 Current Price is $7.69 Difference: $0.81
If SHA meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

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

Citi rates TPW as Neutral (3) -

Citi's initial take is Temple & Webster's trading update released earlier today has revealed a deterioration in topline momentum in combination with a pivot to profitability over revenue growth.

This follows the unexpected recent move where the CEO became the Executive Chairman, the broker points out.

Citi would expect Temple & Webster management is hoping this pivot to profitability is short term and in response to the tough macro versus a permanent change to strategy.

If executed correctly, the broker suggests this should mean the business will be better placed to navigate/survive a downturn, whereas some competitors may not.

Citi does prefer to remain cautious, after a number of unexpected pivots to company strategy/management. Neutral rating reiterated.

Target price is $8.00 Current Price is $5.32 Difference: $2.68
If TPW meets the Citi target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 186.9% (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

Macquarie rates TPW as Outperform (1) -

Macquarie's High Frequency Consumer Data indicates weak consumer spending trends in April, with most categories softening as sentiment deteriorates.

Alcohol (on- and off-premise) and furniture showed the sharpest declines, while electronics was the only major category to record sequential improvement.

Pharmacy continues to grow, the broker highlights, albeit at a slower pace, with signs of increasing competitive divergence.

Macquarie highlights Coles Group for defensive positioning, with longer-term upside seen in JB Hi-Fi and Wesfarmers, while weaker trends are a negative for Endeavour Group.

Among small and mid-cap stocks, it's noted Nick Scali and Temple & Webster are experiencing slowing furniture demand, with potential for further moderation.

Outperform rating and $13.70 target retained for Temple & Webster.

Target price is $13.70 Current Price is $5.32 Difference: $8.38
If TPW meets the Macquarie target it will return approximately 158% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 186.9% (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

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

Morgan Stanley observes the finalised fuel security and resilience policy noted in the Commonwealth budget is a small positive for Viva Energy as financial support for fuel purchases over the near term has been confirmed.

The company's Geelong refinery is running at 60% petrol capacity and 80% diesel and jet fuel, with a target of more than 90% from May 27, 2026.

Equal-weight with a $2.56 target. Industry view: In-Line.

Target price is $2.56 Current Price is $2.19 Difference: $0.37
If VEA meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 26.8% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates WES as Outperform (1) -

Macquarie's High Frequency Consumer Data indicates weak consumer spending trends in April, with most categories softening as sentiment deteriorates.

Alcohol (on- and off-premise) and furniture showed the sharpest declines, while electronics was the only major category to record sequential improvement.

Pharmacy continues to grow, the broker highlights, albeit at a slower pace, with signs of increasing competitive divergence.

Macquarie highlights Coles Group for defensive positioning, with longer-term upside seen in JB Hi-Fi and Wesfarmers, while weaker trends are a negative for Endeavour Group.

Outperform rating and $87 target maintained for Wesfarmers.

Target price is $87.00 Current Price is $71.30 Difference: $15.7
If WES meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $77.06, suggesting upside of 7.7% (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

Macquarie rates XRO as Outperform (1) -

Macquarie updates its financial model for Xero ahead of tomorrow's FY26 result (March year end), highlighting US subscriber growth and AI monetisation as key catalysts.

Industry feedback suggests strong traction in the US, supported by competitive pricing, while the analyst believes AI-driven productivity gains will underpin average revenue per user (ARPU) upside.

The broker's earnings forecasts are revised lower across FY26-FY29, reflecting a mix shift to payments, softer A&NZ subscriber growth, higher share-based payments and increased interest costs.

Macquarie lowers its target to $223.60 from $233.80 and retains an Outperform rating, viewing the stock as mispriced with AI monetisation a key re-rating driver.

Target price is $223.60 Current Price is $80.13 Difference: $143.47
If XRO meets the Macquarie target it will return approximately 179% (excluding dividends, fees and charges).

Current consensus price target is $142.38, suggesting upside of 76.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 1.0

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