Australian Broker Call

Citi rates 360 as Buy (1) -

Citi's analysis of SensorTower data signals a strong May for Life360, particularly in the US. Other international markets also showed accelerating momentum.

While cautious about extrapolating just one month of data, the broker continues to envisage upside to subscription revenue, amid strength in Paying Circles.

The main question is whether the strength reflects the fixing or addressing of technical issues in the first quarter, the broker suggests.

Buy rating maintained and the target is lowered to $28.25 from $32.10.

Target price is $28.25 Current Price is $22.00 Difference: $6.25
If 360 meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $29.67, suggesting upside of 32.9% (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

Bell Potter rates APE as Buy (1) -

Bell Potter has lowered its earnings estimates for Eagers Automotive post AGM, the trading update from Peter Warren Automotive ((PWR)), and the VFacts delivery data for May.

Profit before tax forecasts are trimmed by -2% and -3% for 2026 and 2027, respectively, placing the estimates only marginally above consensus, according to the analyst.

The update assumes lower margins for CanadaOne. Regarding EPS forecasts, there is no change to 2026, but downgrades for 2027 and 2028 of -4% and -5%, respectively.

DPS forecasts are also cut until there is more certainty around the payout ratio post CanadaOne. Target price slips to $28.00 from $28.75 with no change to the Buy rating.

Target price is $28.00 Current Price is $20.82 Difference: $7.18
If APE meets the Bell Potter target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $27.41, suggesting upside of 26.7% (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

Ord Minnett rates APE as Buy (1) -

Ord Minnett notes new car sales data shows deliveries have been challenging for Eagers Automotive amid lower demand for ICE vehicles and delayed supply. This is coupled with strong ongoing demand for electric vehicles.

The broker assesses the company, while a beneficiary from the growth of BYD, is also exposed to Toyota and more traditional brands.

Forecasts are lowered, with 2026 pre-tax profit now estimated at $588.8m and the target trimmed to $27.50 from $29.00. As the stock is now trading around 17.7x 2027 PE, the broker retains a Buy rating.

Target price is $27.50 Current Price is $20.82 Difference: $6.68
If APE meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $27.41, suggesting upside of 26.7% (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

Morgan Stanley rates CNI as Overweight (1) -

Morgan Stanley sees significant upside potential from Centuria Capital's 50%-owned ResetData business should its GPU-as-a-Service strategy gain traction.

Management aims to expand beyond the existing 1.1MW facility by offering access to Nvidia GPUs for AI workloads.

The broker believes the identified 13MW pipeline could generate around $80m in annual profit on a 100% basis, implying approximately $40m attributable to Centuria. This scenario assumes 13MW of contracts are ramped up within the next 3-4 years.

Note: the above analysis is illustrative rather than a forecast, with no customer contracts yet secured and execution risk remaining high, the analysts caution.

Morgan Stanley notes ResetData could struggle to achieve meaningful profitability if expansion does not proceed, underscoring the binary nature of the opportunity.

Target rises by 30c to $2.35. Overweight rating maintained. Industry View: In-Line.

Target price is $2.35 Current Price is $2.00 Difference: $0.355
If CNI meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.03, suggesting upside of 1.7% (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

Morgans rates COI as Speculative Buy (1) -

Comet Ridge has renegotiated its Mahalo acquisition agreement with Santos ((STO)), reducing the upfront cash payment to -$18m from -$38m and extending the funding deadline. Morgans believes these changes materially lower completion risk.

The revised structure shifts more consideration into production-linked payments while preserving Comet Ridge's path to 100% ownership of the Mahalo Gas Hub, the analyst explains.

Santos will also receive $10m in Comet Ridge shares, maintaining alignment with project delivery, the broker highlights.

Commentary notes ongoing progress across approvals, funding discussions and development planning, while highlighting exposure to a tightening east coast gas market. The broker retains a Speculative Buy rating and raises its target to $0.27 from $0.25.

Target price is $0.27 Current Price is $0.13 Difference: $0.14
If COI meets the Morgans target it will return approximately 108% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates COL as Outperform (1) -

Coles Group remains a key stock pick for Macquarie due to its private label and value positioning.

The latest high-frequency consumer data show alcohol sales have slowed, which is not favourable for Coles and Endeavour Group ((EDV)).

In grocery, momentum has also eased, but the broker expects growth to remain "relatively resilient" over the next few months.

Consumers are anticipated to trade into home consumption against a more challenging economic backdrop.

Coles Group retains an Outperform rating and $24.10 target. Woolworths Group ((WOW)) is rated Neutral with a $34 target.

Target price is $24.10 Current Price is $22.21 Difference: $1.89
If COL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $23.86, suggesting upside of 5.3% (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

UBS rates CSL as Buy (1) -

UBS suspects FY26 could be the low point for profitability for CSL, as FY27 is set to benefit from easier comparables after around -$300m of immunoglobulin inventory was withdrawn from the US market.

Reinvestment in R&D and marketing is likely to dilute the benefit of the guided $300m in gross savings but the transformation program is still expected to underpin a return to profit growth.

This is expected to offset the pressure from Vifor because of pricing declines and the $100m one-off from Eli Lilly. A full year benefit should also be captured from lower plasma costs in FY27 following the shift to nomogram collections.

The broker expects the company will deliver low single-digit underlying profit growth in FY27 and with the stock trading at a meaningful discount to the market PE, a Buy rating is retained. Target is reduced  to $158 from $175.

Target price is $158.00 Current Price is $97.91 Difference: $60.09
If CSL meets the UBS target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $129.94, suggesting upside of 30.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.4

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

Morgans rates CVL as Buy (1) -

Morgans observes recent contract awards, including Iluka Resources' Eneabba rare earths refinery project, have lifted Civmec's order book to a record $1.5bn and strengthened earnings visibility.

It's felt the company is entering an earnings upgrade cycle after subdued activity in FY25 and first-half FY26. The broker forecasts FY27 revenue of $1bn, supported by growing exposure to mining, energy, infrastructure and defence projects.

The analyst's earnings forecasts for FY27 and FY28 have been raised following recent wins, while Civmec's strong balance sheet and maintenance growth strategy provide additional support. Morgans retains a Buy rating and lifts its target to $2.30 from $2.00.

Target price is $2.30 Current Price is $1.76 Difference: $0.54
If CVL meets the Morgans target it will return approximately 31% (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 DXS as Neutral (3) -

Dexus has updated further on the matter with APAC as the NSW Supreme Court extends the injunction until June 22.

The REIT has confirmed key executives have been stood down and financial advisers dismissed. Quantifying the potential loss is uncertain at this stage.

Separately, an infrastructure funds review is being undertaken, which contributes around $35m in management fees and represents a meaningful share of total earnings, Citi observes.

The broker assesses the current -40% discount to net tangible assets at which the stock is currently trading at, at least partially reflects the challenges and provides some valuation support at current levels. Neutral rating and $6.50 target.

Target price is $6.50 Current Price is $5.48 Difference: $1.02
If DXS meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.75, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.0

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

UBS rates FLT as Buy (1) -

Helloworld Travel has provided a trading update, downgrading guidance for FY26 underlying EBITDA which UBS, in an initial take, suspects may impact views on Flight Centre Travel.

Helloworld has cited the Middle East conflict and decreased forward bookings amid increased cancellations.

Buy and $14.50 target for Flight Centre Travel.

Target price is $14.50 Current Price is $11.03 Difference: $3.47
If FLT meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $15.23, suggesting upside of 36.1% (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 HVN as Neutral (3) -

Macquarie expects furniture to be the segment that comes under the most pressure from a slowdown in the domestic consumer, with data from the latest high-frequency consumer series supporting the analyst's proposition.

Harvey Norman is rated Neutral with a $4.50 target. Nick Scali ((NCK)) is rated Outperform with a $15.30 target.

Target price is $4.50 Current Price is $4.44 Difference: $0.06
If HVN meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 14.9% (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

Morgans rates IEL as Upgrade to Buy from Hold (1) -

IDP Education faces ongoing pressure from weaker student visa volumes and lower grant rates across Australia, Canada and the UK, Morgans notes, reflecting tighter immigration policies in key markets.

Despite the challenging backdrop, the analyst points to rapid expansion of IELTS testing centres in China and progress on a -$25m cost reduction program. Ongoing pricing power across both testing and student placement services is also noted.

The broker also sees longer-term support from technology initiatives and structural demand for international education.

While FY26 and FY27 earnings forecasts have been reduced, Morgans views the current downturn as cyclical rather than structural.

Target reduced to $3.15 from $6.30 on materially lower earnings forecasts and a change in valuation method. Rating upgraded to Buy from Hold.

Target price is $3.15 Current Price is $2.00 Difference: $1.155
If IEL meets the Morgans target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 92.3% (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 retains an Outperform rating on JB Hi-Fi as its preferred exposure for "long-term upside".

The latest high-frequency consumer data show electronics was a "standout" segment over April and May, with some signs of growth accelerating over the period.

EOFY remains a key period for electronics retailers.

The analyst likes JB Hi-Fi for its cost management and ability to execute, with the electronics segment showing signs of resilience.

The target price is retained at $98.

Target price is $98.00 Current Price is $72.08 Difference: $25.92
If JBH meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $84.91, suggesting upside of 15.6% (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

Citi rates JIN as Neutral (3) -

Citi asserts the investor briefing from The Lottery Corp ((TLC)) on its digital focus is negative for Jumbo Interactive, suspecting the reseller agreement that ends in 2030 would likely be renewed on worse terms.

Recent acquisitions reflect these concerns, the broker suspects, as well as attempts to diversify earnings. EBITDA estimates are reduced by -2% for FY26 given weaker-than-expected turnover growth in lotteries in the current half-year.

Neutral rating. Target is lowered to $8.30 from $9.90.

Target price is $8.30 Current Price is $7.26 Difference: $1.04
If JIN meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.64, suggesting upside of 59.0% (ex-dividends)

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

Morgans rates MP1 as Downgrade to Accumulate from Buy (2) -

Megaport's expansion into AI infrastructure from network connectivity has driven a sharp improvement in Morgans' earnings expectations, supported by recent contract wins and an $809m capital raising.

The broker highlights the company's growing exposure to AI inference, noting its communications network and data centre footprint provide a competitive advantage in delivering integrated connectivity, CPU and GPU solutions.

Megaport has materially expanded its addressable market, with customers typically spending significantly more on compute services than connectivity, the analyst explains.

Following recent major contract wins, Morgans increased its FY27 and FY28 earnings forecasts by 88% and 218%, respectively.

The target is raised to $21.00 from $15.50 and the rating downgraded to Accumulate from Buy.

Target price is $21.00 Current Price is $18.48 Difference: $2.52
If MP1 meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $20.35, suggesting upside of 6.9% (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

UBS rates NHF as Neutral (3) -

The strategic review of nib Travel has been concluded with nib Holdings agreeing to sell its remaining Australasian operations including Travel insurance Direct to Allianz Partners for up to $50m.

Sale is to be completed by the end of 2026, subject to regulatory approval after which nib Holdings will undertake a capital management review to determine the best use of sale proceeds.

The company has also entered a long-term strategic partnership with Allianz to continue distributing nib-branded travel insurance products, earning ongoing commissions outside the sale consideration.

This completes the company's exit from non-core segments and UBS considers the transaction positive as it sharpens the focus on core health insurance and services.

Neutral rating and $7.05 target.

Target price is $7.05 Current Price is $6.59 Difference: $0.46
If NHF meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 9.3% (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 NST as Outperform (1) -

Post activist investor Elliott Advisers taking a circa 4% stake in Northern Star Resources, Macquarie considers three scenarios following the strategic review advocated by Elliott.

A full sale would open up the company to a limited pool of large multinationals, the analyst believes, including Barrick, Newmont ((NEM)), Agnico Eagle, AngloGold, or Gold Fields. Agnico has shown interest previously, while a move by Newmont or Barrick would represent a reversal of the 2019 sale.

Regarding a possible carve-up, the broker sees some scope to sell non-core assets, with a self-help strategy also possible through a carve-up.

EPS forecasts are tweaked lower over FY26-FY30, with an unchanged target price of $25. The Outperform rating is retained.

Target price is $25.00 Current Price is $19.88 Difference: $5.12
If NST meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $27.79, suggesting upside of 43.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

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

Bell Potter rates PFP as Buy (1) -

Propel Funeral Partners downgraded FY26 guidance, with revenue missing Bell Potter and consensus forecasts by -3% to -4%, and earnings (EBITDA) a -7% miss to consensus and around -4% below the analyst's estimate at the midpoint.

Total volume growth for 2H26 was indicated as down around -1% at the midpoint, with a slower start to the 2026 flu season noted as a possible reason.

The broker points to a 2.5% rise in the cost of doing business, which was broadly in line. Management announced a small acquisition in regional NZ.

Target price falls by -24% to $3.80 from $5 due to the decline in earnings estimates and a lower ascribed value. Net profit after tax forecasts are downgraded by -12% for FY26 and -13% for FY27.

The Buy rating is retained. Bell Potter likes the tailwinds from an ageing population, and the freehold property portfolio is viewed as a hedge against net gearing of 2.3x.

Target price is $3.80 Current Price is $3.19 Difference: $0.61
If PFP meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.10, suggesting upside of 70.0% (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 PXA as Neutral (3) -

UBS highlights the fact that Pexa Group earnings are sensitive to shifts in property transfer volumes and a -1% decrease in transfer volumes results in a -2% reduction in earnings per security.

Highlights of final clearance rates and modelled sales volume data by Cotality shows sales volumes fell -9% in May, taking the rolling six-month sales volume growth to 2.3%. Clearance rates declined to 49% on a weighted average basis for the week ending May 31, below the five-year average of 64%.

The broker suggests this signals emerging softness in housing turnover. Neutral rating and $12.80 target for Pexa Group.

Target price is $12.80 Current Price is $10.76 Difference: $2.04
If PXA meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $15.40, suggesting upside of 44.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

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

Bell Potter rates REA as Downgrade to Sell from Buy (5) -

Bell Potter has downgraded REA Group to Sell from Buy with a lower target price of $137 from $217 after adjusting for an expected decline in national house prices following rate hikes and the Australian budget.

Historically, over FY19 and FY23, when dwelling prices fell, REA experienced notable declines in listings of -8% and -12%, respectively.

On those occasions, residential segment revenue and group EPS fell -9% and -8%, respectively, on a half-yearly basis, the analyst states.

Updated modeling now incorporates a -10% decline in listings for FY27, compared to -2% previously, partially offset by the group's ability to protect its margin.

EPS forecasts are lowered by -1% for FY26, -14% for FY27, and -13% for FY28.

Target price is $137.00 Current Price is $158.81 Difference: minus $21.81 (current price is over target).
If REA meets the Bell Potter target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $202.12, suggesting upside of 33.2% (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 RSG as Outperform (1) -

Macquarie highlights the ongoing disruption in Mali, which has worsened over the last four weeks and has impacted transportation and logistics.

A delay in equipment deliveries has affected Resolute Mining and its contractor Corica's ability to mine higher-grade sulphide zones in the A21 pit, the broker explains. Underground operations have also been disrupted by explosives supply challenges.

Management has guided to 2Q2026 Syama production of around 30koz, which sits some -27% below consensus at 41koz and the broker's prior forecast of 50koz, down -40%.

Full year 2026 production guidance is retained at 195koz to 210koz with unchanged cost guidance.

Target price is unchanged at $1.80 with an Outperform rating.

Target price is $1.80 Current Price is $1.14 Difference: $0.665
If RSG meets the Macquarie target it will return approximately 59% (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 SIG as Outperform (1) -

Macquarie points to Sigma Healthcare retaining momentum over the previous year, with the latest high-frequency consumer data indicating an improvement in May compared with April.

The analyst anticipates tailwinds from GLP-1s, as well as positive beauty and healthcare trends, to boost the company's market share.

Scope for lower consumer spending on travel may offset weakening consumer sentiment and inflation pressures.

Sigma is rated Outperform with a target price of $3.50.

Target price is $3.50 Current Price is $2.92 Difference: $0.58
If SIG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 12.5% (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

Morgans rates SK1 as Initiation of coverage with Buy (1) -

Morgans initiates coverage on specialty piercing retailer SkinKandy with a Buy rating and target of $2.90.

SkinKandy operates 107 piercing-focused retail stores across A&NZ, with the analyst highlighting a service-led, vertically integrated model supported by strong store economics and high barriers to entry.

The broker sees multiple growth drivers, including store maturation, improving profitability and a self-funded rollout of 15-20 stores annually. International expansion into the US, UK and South Africa from 2027 is also seen as providing additional upside potential.

Morgans forecasts earnings per share growth of 33% annually between FY25 and FY28, underpinned by revenue growth, operating leverage and margin expansion.

Target price is $2.90 Current Price is $2.20 Difference: $0.7
If SK1 meets the Morgans target it will return approximately 32% (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

Morgans rates SRG as Accumulate (2) -

Management at SRG Global has upgraded FY26 earnings (EBITDA) guidance to the top end of its $164m-$168m range.

The company also provided FY27 guidance of $190m-$200m earlier-than-expected, highlighting to Morgans strong earnings visibility supported by $1.85bn in new contract awards.

It's noted the awards span nine sectors and include a transformative eight-year water infrastructure alliance with Gympie Regional Council.

The broker also highlights the first engineering and construction contract secured by TAMS (specialist marine and civil infrastructure contractor) under SRG ownership, validating the acquisition strategy.

Morgans retains an Accumulate rating and raises its target to $4.20 from $3.20.

Target price is $4.20 Current Price is $3.82 Difference: $0.38
If SRG meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting downside of -0.7% (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

Morgan Stanley rates SSM as Initiation of coverage with Overweight (1) -

Morgan Stanley expects Service Stream to be a beneficiary of a multi-year uplift in Australian infrastructure spending driven by ageing assets and historically low investment levels.

Research coverage is initiated with an Overweight rating and a $2.80 target. Industry View: In-Line.

The broker favours the company's annuity-style revenue profile, underpinned by recurring maintenance work and long-standing customer relationships.

High contract renewal rates provide a stable earnings base, while strong market positions and favourable industry tailwinds support incremental growth, the analysts explain.

Expansion into Defence and Social Infrastructure adds a further growth pillar and diversifies existing exposures, the broker notes. It's felt this should unlock incremental follow-on work, deliver scale benefits for margins and provide meaningful earnings leverage.

The broker prefers Service Stream over Ventia Services (initiated at Equal-weight) due to its strong competitive position, greater growth optionality and margin upside, at a similar multiple.

Target price is $2.80 Current Price is $2.44 Difference: $0.36
If SSM meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 12.0% (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 VNT as Initiation of coverage with Equal-weight (3) -

Morgan Stanley expects Ventia Services to be a beneficiary of a multi-year uplift in Australian infrastructure spending driven by ageing assets and historically low investment levels.

Ventia operates across diversified sectors, including defence, utilities, transport, social infrastructure, and resources.

Research coverage is initiated with an Equal-weight rating and a $6.40 target. Industry View: In-Line.

The broker favours the company's annuity-style revenue profile, underpinned by recurring maintenance work and long-standing customer relationships.

High contract renewal rates provide a stable earnings base, while strong market positions and favourable industry tailwinds support incremental growth, the analysts explain.

The broker prefers Service Stream (initiated at Overweight) due to its strong competitive position, greater growth optionality and margin upside, at a similar multiple.

Target price is $6.40 Current Price is $6.23 Difference: $0.17
If VNT meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.20, suggesting downside of -1.1% (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

Morgans rates VYS as Upgrade to Buy from Speculative Buy (1) -

In a deal expected to be around 25% earnings-per-share accretive, Vysarn will acquire irrigation and water infrastructure specialist NewGround. Morgans highlights this move will improve earnings quality and reduce exposure to mining cycles.

NewGround provides design, construction and maintenance services for industrial-scale irrigation and water management systems.

It's felt the acquisition strengthens the company's strategy of building an integrated water services platform, adds a defensive, recurring revenue stream, and broadens Vysarn's customer base.

Morgans increases its FY27 and FY28 earnings forecasts by 19% and 24%, respectively. The target is raised to $1.10 from $0.90 and the rating is upgraded to Buy from Speculative Buy

Target price is $1.10 Current Price is $0.92 Difference: $0.185
If VYS meets the Morgans target it will return approximately 20% (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

Morgans rates ZZZ as Initiation of coverage with Buy (1) -

Comet Ridge has renegotiated its Mahalo acquisition agreement with Santos ((STO)), reducing the upfront cash payment to -$18m from -$38m and extending the funding deadline. Morgans believes these changes materially lower completion risk.

The revised structure shifts more consideration into production-linked payments while preserving Comet Ridge's path to 100% ownership of the Mahalo Gas Hub, the analyst explains.

Santos will also receive $10m in Comet Ridge shares, maintaining alignment with project delivery, the broker highlights.

Commentary notes ongoing progress across approvals, funding discussions and development planning, while highlighting exposure to a tightening east coast gas market. The broker retains a Speculative Buy rating and raises its target to $0.27 from $0.25.

Target price is $0.27

Current consensus price target is $1.97, suggesting upside of 252.4% (ex-dividends)

The company's fiscal year ends in January.

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: 0.8

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