Australian Broker Call

Shaw and Partners rates A1M as Buy, High Risk (1) -

AIC Mines published drilling results from the Jericho copper deposits, with both the Jolly shoot on the J1 lens and the Tucker shoot on the J2 lens returning high-grade intercepts.

Shaw and Partners highlights the results confirm extensive zones of high-grade mineralisation adjacent to the Jericho Link Drive location, and between Billabong and Swagman.

Buy, High Risk. Target unchanged at 70c.

The broker remains a copper bull, and AIC Mines is its preferred producing exposure.

Target price is $0.70 Current Price is $0.32 Difference: $0.38
If A1M meets the Shaw and Partners target it will return approximately 119% (excluding dividends, fees and charges).

Current consensus price target is $0.59, suggesting upside of 89.2% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates A2M as Downgrade to Neutral from Buy (3) -

Citi has turned incrementally cautious on a2 Milk Co for several reasons including weaker Chinese import volumes and elevated air freight volumes implying short-term product shortages.

Other reasons include relatively dated stage 3 formula inventory and profit warning by Feihe. The broker believes some of the factors may reflect timing issues with dragon babies yet to move to the stage 3 formula stage but it is still cautious ahead of FY25 result on August 18.

No changes to forecasts but rating downgraded to Neutral from Buy. Target unchanged at $8.20.

Target price is $8.20 Current Price is $7.61 Difference: $0.59
If A2M meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.40, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.1

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

Ord Minnett rates BOE as Downgrade to Hold from Buy (3) -

Ord Minnett downgrades Boss Energy to Hold from Buy, with the stock having rallied from a low in April of $2.30 and short positions unwinding to 14% of the shares from a peak of 26%, the analyst explains.

Marking to market near-term U3O8 price and the AUD/USD rate, the analyst lowers the target price to $4.10 from $6, removing the previous premium for the short squeeze and $0.40 per share due to the higher AUD against the March forecast.

The broker notes Boss has extended the repayment of its 100klb uranium loan to 30%-owned Alta Mesa and lent another US$3.6m, with Alta Mesa not viewed as cash flow positive yet.

Sales from Honeymoon in the September quarter may benefit from a higher U3O8 spot price, Ord Minnett notes.

Target price is $4.10 Current Price is $3.96 Difference: $0.14
If BOE meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.89, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates CAR as Buy (1) -

Citi observes used vehicle sales growth in Brazil slowed in June to 11% y/y from 28% y/y in May. Growth in 2H25 was 14% y/y vs 11% y/y in 1H25, boding well for CAR Group's Webmotors.

The broker's estimate is for 28% y/y growth in constant currency terms for Webmotors in 2H25, slowing from 30% y/y in 1H25 due to headwinds from higher interest rates.

A potential headwind for finance revenue and vehicle sales is the proposed increase to financial transactions tax by the Brazilian government, the broker highlights.

Buy. Target unchanged at $42.60.

Target price is $42.60 Current Price is $37.27 Difference: $5.33
If CAR meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $41.40, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates CGF as Outperform (1) -

Macquarie details an estimated increase in Challenger's 4Q25 credit spreads for its portfolio by around 13bps on falling investment yields and highlights that changes in spreads only impact new business.

Challenger offered annuity rates of 4.1%/4.3% across 3-year/5-year tenors, with the premium over major banks' deposit rates for the same tenors shrinking by around -9bps.

The analyst points to adviser portal visits being down around -48% in 4Q25 compared to a year earlier, which infers potential downside risks to 2H25, given the positive link between web visits and retail fixed-term sales.

Macquarie points to a potential capital return announcement at the August 19 FY25 results, following APRA's new capital standards effective July 1.

The analyst tweaks EPS estimate by 0.6% for FY25 and lowers FY26 by -4.3% due to mark-to-market impacts on the investment portfolio.

Target price is raised to $9.30 from $7 due to a lower share count at the end of the $750m buy-back from 1H27. No change to Outperform rating.

Target price is $9.30 Current Price is $8.08 Difference: $1.22
If CGF meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.16, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Morgans rates CIP as Upgrade to Hold from Trim (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

The broker's target for Centuria Industrial REIT rises to $3.25 from $2.85 and the rating is upgraded to Hold from Trim.

The industrial and logistics sector remains resilient, explains Morgans, supported by strong leasing fundamentals as expiring leases reset to higher market rents.

In this context, Centuria Industrial REIT's portfolio is seen as well positioned, benefiting from its strategic exposure to infill locations.

Target price is $3.25 Current Price is $3.12 Difference: $0.13
If CIP meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgans rates COF as Upgrade to Hold from Trim (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

Mangement at Centuria Office REIT expects lower levels of office supply, as development feasibilities struggle against higher construction costs. The broker's target rises to $1.14 from $1.05. Upgrade to Hold from Trim.

Target price is $1.14 Current Price is $1.14 Difference: $0
If COF meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

Ord Minnett rates COH as Hold (3) -

Ord Minnett expects Cochlear’s new Nucleus Nexa platform to drive strong implant growth, forecasting volume increases of 14% in FY26 and 17% in FY27.

This is expected to support a rise in market share to 74% by FY27 from 65% currently, even as upgrade demand remains soft.

The January 2026 obsolescence of the N7 processor and the release of the Kanso 3 may lift FY26 services revenue, notes the broker. However, overall services sales are expected to decline -2% in FY26 and -6% in FY27, keeping the broker below consensus.

Ord Minnett raises its FY26 and FY27 EPS forecasts by 3.1% and 3.7%, respectively, and lifts its target price to $295.00 from $285.00, while retaining a Hold rating.

Target price is $295.00 Current Price is $301.50 Difference: minus $6.5 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $292.59, suggesting downside of -3.5% (ex-dividends)

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

Morgans rates DGT as Buy (1) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

For Digico Infrastructure REIT, Morgans notes the business has several upcoming catalysts that, if successfully executed, are expected to enhance the underlying asset value. Unchanged Buy rating and $5.10 target.

The broker sees the data centre sub-sector as one of the most attractive amongst the wider commercial real estate industry.

Target price is $5.10 Current Price is $3.13 Difference: $1.97
If DGT meets the Morgans target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 60.3% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates DXC as Downgrade to Hold from Accumulate (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

For Dexus Convenience Retail REIT, the target falls to $3.00 from $3.20 and the rating is downgraded to Hold from Accumulate.

Target price is $3.00 Current Price is $2.98 Difference: $0.02
If DXC meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgans rates DXI as Upgrade to Accumulate from Trim (2) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

For Dexus Industria REIT, the target rises to $3.00 from $2.65 and the rating is upgraded to Accumulate from Trim. Morgans expects the industrial portfolio will deliver positive net property income growth, albeit largely offset by higher interest costs.

Target price is $3.00 Current Price is $2.70 Difference: $0.3
If DXI meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.04, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgans rates EGH as Buy (1) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

Macro trends support Eureka Group's business model for affordable seniors rental accommodation, highlights Morgans. The Buy rating and 79c target are maintained.

Target price is $0.79 Current Price is $0.56 Difference: $0.23
If EGH meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Morgans rates GDF as Hold (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

For Garda Property, the target rises to $1.20 from $1.15. Hold retained.

Target price is $1.20 Current Price is $1.22 Difference: minus $0.02 (current price is over target).
If GDF meets the Morgans 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 FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgans rates GMG as Downgrade to Hold from Accumulate (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

While acknowleding a great business, Morgans feels the valuation for Goodman Group is a stretch and downgrades to Hold from Accumulate. The target rises to $37.20 from $36.65.

Target price is $37.20 Current Price is $34.95 Difference: $2.25
If GMG meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.04, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Macquarie rates GOR as Neutral (3) -

Gold Road Resources announced preliminary 2Q 2025 results with production coming in below consensus expectations by -15% and below Macquarie's forecast by -14%.

Sales also came in under consensus and broker expectations by -12% and -11%, respectively.

Costs are flagged to be announced on July 17, while the cash and bullion increase of $38m to around $242m at quarter-end was below expectations for Macquarie.

Management flagged 2025 production to come in at the lower end of guidance, with all-in-sustaining costs at the higher end. The broker forecasts production for 2025 at 163koz and all-in-sustaining costs at $2,601.

Gold Road will update the market on the progress with the scheme of arrangement with Gold Fields at the quarterly update.

No change to Neutral rating. Target moves lower to $3.30 from $3.40.

Target price is $3.30 Current Price is $3.21 Difference: $0.09
If GOR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.31, suggesting upside of 4.2% (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

Morgans rates HCW as Hold (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

The target for HealthCo Healthcare & Wellness REIT falls to 75c from 90c. Hold retained. The business value is contingent on major tenant Healthscope's lease negotiations, highlights Morgans.

Target price is $0.75 Current Price is $0.74 Difference: $0.01
If HCW meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $0.96, suggesting upside of 29.7% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates HDN as Accumulate (2) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

For HomeCo Daily Needs REIT, Morgans highlights resilient cashflows and the ongoing benefit from accelerating click & collect trends.

Target price is $1.33 Current Price is $1.25 Difference: $0.08
If HDN meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Morgans rates HMC as Hold (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

Recent share price weakness for HMC Capital is primarily linked to funding uncertainties surrounding the renewable energy portfolio, explains Morgans. The asset manager is scheduled to progressively settle from August 2026.

The target falls to $4.20 from $5.20. Hold maintained.

Target price is $4.20 Current Price is $3.89 Difference: $0.31
If HMC meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.44, suggesting upside of 69.5% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates JHX as Hold (3) -

Ord Minnett expects James Hardie’s first-half FY26 net profit to fall -16% year-on-year due to weaker volumes, pricing, and margins in the North American Fibre Cement division.

The broker’s earnings estimates are below consensus, with its FY26 net profit forecast around -8% lower than the broader market.

Ord Minnett has reduced its EPS forecasts by -8.4% in FY26, -3.6% in FY27, and -3.3% in FY28, citing earlier Azek transaction completion, soft US housing data, and higher interest costs.

The broker raises its target price to $41.50 from $40.00 on a model valuation roll-forward and maintains a Hold rating.

Target price is $41.50 Current Price is $42.82 Difference: minus $1.32 (current price is over target).
If JHX meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.80, suggesting upside of 7.6% (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: 0.4

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

UBS rates LIC as Buy (1) -

VCAT's decision stated the deferred management fee was permissible but not in the existing form where the amount is unknown at the time of the resident signing the contract, UBS explains.

Lifestyle Communities has announced it intends to appeal the decision. The analyst states if unsuccessful, the value of the deferred management fee could be written down completely, which is estimated at $1.44 of the NTA, with risks of a repayment of previous collections worth around $47m.

On the assumption of little deferred management fee over the next two years, UBS lowers FY26 earnings by -11% to an expected decline of -17% on the FY25 forecast.

An appeal also adds uncertainty for investors and impacts on possible sales, with the share price likely to move lower, the analyst proposes.

Target price cut to $8.83 from $10.37. No change to Buy rating.

Target price is $8.83 Current Price is $7.04 Difference: $1.79
If LIC meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $9.05, suggesting upside of 102.5% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates ORG as Neutral (3) -

Macquarie details how Origin Energy's energy markets have performed ahead of expectations for FY25, even though June was a soft month due to coal and the lack of a wind drought a year earlier.

For 4Q25, APLNG plant flows equate to production of around 130–133PJ, with domestic volumes anticipated to decline. On balance, falling prices are expected to be a headwind for dividends in FY26, implying cashflow will not be impacted until FY26.

The broker points to an uplift in forecasts for energy markets of 4%–5% for FY26/FY27, respectively, with retail customers highlighted as notably robust.

Macquarie's Octopus valuation is raised to GBP12bn from GBP9bn, with the longer-term margin assumption lifted 80% to 15%.

The analysts tweak EPS estimates by 0.5% for FY25 and raise FY26 by 4.8%. Neutral rating retained. Target lifts to $10.94 from $10.12.

Target price is $10.94 Current Price is $11.44 Difference: minus $0.5 (current price is over target).
If ORG meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.80, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates QAL as Downgrade to Accumulate from Buy (2) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

Qualitas is well positioned to maintain its share of the expanding market for private credit-backed multi-unit metro residential developments, highlights Morgans, as major banks continue to scale back their exposure to this segment of Commercial Real Estate lending.

The target rises to $3.80 from $3.35 and the rating is downgraded to Accumulate from Buy.

Target price is $3.80 Current Price is $3.48 Difference: $0.32
If QAL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgans rates WPR as Hold (3) -

A Property sector update by Morgans reveals a preference for data centres, retail, and private credit due to more resilient leasing trends and earnings visibility.

The broker remains cautious on office and industrial due to softening rental spreads and ongoing leasing incentives. Sydney industrial and office markets have displayed varied performance in yields and vacancies during June, notes Morgans.

Overall, June quarter valuations show modest book value gains, as rental growth has largely offset cap rate expansion, explain the analysts.

Declining interest rate swap curves are easing funding pressures, with falling interest costs expected to become a tailwind for FFO and improve transaction activity as yield spreads normalise.

For Waypoint REIT, the Hold rating and $2.50 target are unchanged. A re-rating will likely require more consistent earnings growth and improved returns, suggests Morgans.

Target price is $2.50 Current Price is $2.47 Difference: $0.03
If WPR meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

Morgan Stanley rates XRO as Overweight (1) -

Morgan Stanley's positive conviction on Xero increased further after it analysed risks for the company as part of a global collaboration on the US mid-market ERP segment. The broker saw no risk.

The broker sees a "very large" opportunity for the company in the small and medium business (SMB) market, noting the SMB accounting software market is immature.

The analyst reiterated there's strategic merit in the acquisition of Melio as it will further enhance the company's strategy by bringing together accounting and payments into a single platform.

Overweight. Target price $235. Industry View: Attractive.

Target price is $235.00 Current Price is $178.40 Difference: $56.6
If XRO meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $213.17, suggesting upside of 20.2% (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: 0.8

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