Corporate Results Monitor

Higher margins assisted Advanced Innergy with releasing 1H26 performance in line with Morgans' forecasts. Revenue was -2% y/y and -5% below the analyst's forecast, but a higher gross margin saved the day. Positively, the order book rose 32% y/y to GBP116m, up 50% including a new long-term EV battery protection contract. Management reiterated guidance and Morgans highlights at the IPO offshore wind and battery protection materials were nominated as the high growth segments. The traditional subsea market is now anticipated to see some major tailwinds. The stock is viewed as "cheap" at 8x EV/EBIT and with a weaker 1H26 in the rear view mirror, the broker argues the outlook has improved. Buy.

Alcoa’s March-quarter operating earnings missed expectations, largely due to inventory repositioning within the US and logistical issues, which weighed on shipments despite broadly in-line production. Ord Minnett views these shortfalls as timing-related, with underlying demand remaining strong and supply constrained by smelter shutdowns in the Middle East, creating potential upside for Alcoa. Higher diesel costs are expected to pressure the company's Western Australian bauxite operations, particularly in 2H 2026. Citi retains a Buy on the stock due to its "structurally bullish" outlook on aluminium, irrespective of the Middle East, as well as viewing Bill Oplinger as a "transformational CEO". UBS sits on Neutral. Ord Minnett has upgraded to Accumulate from Hold.

ALS Ltd announced slightly better than expected 2H26 results with Morgans noting Commodities was the stand out with Life Sciences the "laggard", albeit that was no major surprise. Macquarie underscored sample flows picked up in November and December and then stayed at that level, while any increase now would have positive implications for guidance. Management lifted the outlook for FY27 minerals organic revenue growth to 13%-15%. Margins are flagged to expand in 2H27, while Life Sciences was guided to mid-single digit organic revenue growth for FY27. Five Buy-equivalent ratings.

Amcor's March quarter earnings were largely in line, but FY26 guidance has been downgraded. Judging from the share price response, the market was fearing a lot worse. There remains potential for cost-of-living impacts on demand although Macquarie assesses the company's consumer staples end markets remain defensive. Ord Minnett believes near-term expectations have been sufficiently cleared and valuation support is becoming more evident. Thus far, four Buy ratings.

ANZ Bank's FY26 financials are broadly in line, with here and there minor misses. Citi highlights net interest margin of 1.53% was -3 basis points below expectations, largely a function of market drag. New Zealand was also a drag because of FX translation. Costs were better than expected, supported by FX, and guidance has improved with the bank guiding to costs being down -5% on the FY25 baseline. Bad debts were largely in line with expectations. Strategy components across FY26 and FY27 appear on track. Morgans notes asset quality remains resilient, while capital levels are strong, allowing the bank to neutralise its dividend reinvestment plan and reduce dilution. Many point out the valuation is cheaper than for local peers. Following three upgrades, two Buy ratings are outnumbered by three on Neutral/Hold, plus one soft Sell.

Morgans sums up the earnings season well, where market expectations drive much of the response to results. In Aristocrat Leisure's case, in-line with consensus was good enough to prompt a 13% rally in the share price. Macquarie notes North American gaming has momentum and Product Madness outperformance can continue. Management flagged net adds to be at the top end of guidance, 4000-5000 units for FY26. For Ord Minnett, the main issue is whether meaningful margin expansion is achievable. Management has signalled a target to remove $100m in costs in FY27. Macquarie expects 10%-15% earnings growth over the medium term with benefits from ongoing buybacks. As the stock is universally seen as undervalued, seven Buy-equivalent ratings.

Aroa Biosurgery FY26 revenue and normalised earnings both exceeded guidance. Bell Potter (Buy) notes growth was driven by the company's flagship wound care product range Myriad, which delivered standout performance and accelerated US momentum. Myriad grew 52% on a constant currency basis versus FY25. Margins benefited from operating leverage and favourable FX. Morgans (Buy) notes direct sales now generate around 59% of the total product revenue.

Australian Agricultural Co delivered FY26 operating EBITDA up 23% and ahead of Bell Potter's forecasts. Revenue of $422.1m was up 9%, with the broker noting the record operating performance was understated because of the inclusion of -$9m in flood-related costs. The company has indicated global beef demand should remain strong while acknowledging inflationary pressures in energy, transport and production.

Morgans views Avita Medical's 1Q2026 result as a step in the right direction, with solid sequential revenue growth and reaffirmed FY26 guidance. Bell Potter noted revenue growth up 4% y/y and an earnings (EBIT) loss of -$8.8m against a prior loss of -$15.6m for the comparable period. Revenue of $19.3m over the quarter was highlighted as nearing a record high with most generated from 175 specialist burn units and L1 trauma centres. FY26 revenue guidance is considered achievable. Management also guided to a material reduction in cash burn in the second quarter, which should meaningfully narrow the funding deficit. One Speculative Buy and one Speculative Hold rating.

Bank of Queensland's FY26 missed market consensus by some -3%. Margins softened in the half but are expected to improve in 2H26, supported by funding, mix and hedging tailwinds. Morgans highlights a stronger capital position, enabling higher dividends and potential capital returns, which may appeal to income-focused investors. Morgans upgrades to Accumulate from Hold. In contrast, Macquarie downgrades to Underperform from Neutral, pointing to downside risks from rising provisions and ongoing loss of market share. Citi downgrades to Neutral from Buy, as does UBS. Morgan Stanley sticks with a Neutral-equivalent view expecting a return to growth in home lending in FY27. Ord Minnett had downgraded to Lighten before the result and hasn't bothered to update post the result.

Black Pearl's FY26 result reflected strong ARR growth, Bell Potter notes, but higher operating costs spoiled the market update. Annual recurring revenue (ARR) rose 114% to NZ$26.8m, while recognised revenue increased 77% to NZ$13.7m. The broker highlights ongoing scaling within Pearl Engine, with daily data ingestion rising almost 48% since September 2025. Management has also introduced a cost-led operating model and identified integration synergies following the B2BRocket acquisition. Bell Potter retains a Speculative Buy rating and lowers its valuation to $1.33 from $1.82.

Capstone Copper announced 1Q2026 earnings (EBITDA) of US$329m, a record and 16% above consensus, boosted by higher realised copper prices of US$5.92/lb. Alas, sulphuric acid costs are a major headwind for margins as prices have lifted to around US$420/t in Chile from US$180/t in January. Sulphuric acid is a significant input for Capstone's cathode production at Mantoverde and Mantos Blancos. Citi observes 2026 guidance remains unchanged. Key upcoming catalysts are seen as progress at the Mantoverde Optimised (upgrade and expansion project) and permitting and study milestones at Mantos Blancos (also in Chile). Four out of four Buy ratings.

All analysts saw Catapult Sports achieving strong growth with ongoing strong prospects, positively surprising most. Ord Minnett describes Catapult Sports' FY26 result as impressive, with revenue, annual contract value (ACV) and earnings all exceeding expectations. Morgans notes the company closed the year with US$53.5m in cash on the balance sheet and no debt. The statutory loss of -US$24m has widened, with the deterioration largely non-cash and acquisition-related. Morgan Stanley highlights all operating metrics improved and was particularly pleased with the progress made in incorporating the IMPECT and Perch acquisitions. Bell Potter expects another year of solid growth despite increasingly difficult comparisons as the business scales. Four Buy ratings.

Champion Iron's FY26 result was weaker than expected by Bell Potter, with softer realised prices and higher unit costs weighing on earnings. The broker also highlights a reduced final dividend, reflecting management's decision to preserve liquidity amid volatile macroeconomic conditions. The board recently revised its dividend framework and now targets payouts of 30%-40% of trailing six-month free cash flow (FCF). Bell Potter expects FCF to improve from FY27 as capital expenditure declines and Direct Reduction Pellet Feed (DRPF) production ramps up. Hold rating retained with price target reduced.

Civmec announced net profit after tax up 45.2% for 3Q26 on revenue uplift of 54.1% y/y. Bell Potter notes against earnings forecasts, revenue of $232.2m in 4Q26 (versus $244.2m in 3Q) seems very achievable. Earnings (EBITDA) margins were slightly better than expected, resulting in a slight uplift in FY26 earnings (EBITDA) margin forecasts. Notably tendering activity remains strong across most divisions. The order book fell slightly to $1.3bn at March quarter end from $1.35bn at the end of the Dec quarter. So far, one Buy rating.

A robust beat is how UBS described Dyno Nobel's interim earnings (EBIT) exceeding consensus expectations by 18%. Explosives advanced 28% y/y, boosted by APAC strength. Macquarie highlighted weakness for Latam and EMEA, lower than anticipated, with no change to FY26 earnings guidance. Positively, the transformation program is on track for an earnings (EBIT) target of $600m at the end of FY26. The supply of ammonium nitrate is also secure, universally seen as another positive. The sale of Phosphate Hill to Mayfair is due to complete by the end of June. Despite the beat, analysts caution on the valuation at current levels resulting in four Hold-equivalent ratings and one Buy.

EBR Systems' 2025 financial performance proved broadly in-line with forecasts but gross margins are expected to decline in 2026 to reflect current inventory costs before rising again in 2027. Both Bell Potter and Morgans retain a positive view, but reduced forecasts weigh down on respective price targets. Morgans does highlight EBR Systems has made a strong start to 2026 amid favourable reimbursement and growing physician engagement. Two Buys.

An unexpectedly strong rise in costs led to Elders' 1H26 earnings (EBIT) missing forecasts by -6%-8%. Add El Nino uncertainty and the share price received severe punishment. Morgans observed the results operationally were robust with sales rising 32% and underling earnings up 33%. Real estate earnings were flat while rural services rose 35% and crop protection increased by 57%. Management offered no formal FY26 guidance but Delta is expected to make a positive contribution. Macquarie observed there has been a robust start to the winter season across Victoria, South Australia and Western Australia with ongoing tailwinds in agencies such as elevated livestock pricing. Four Buy-equivalent ratings and one Hold rating.

Environmental Group now expects FY26 normalised EBITDA in the range of $8.5-9.0m, compared with prior guidance of 15-20% growth which translated to $12.7-$13.5m. A -$2.5m estimated EBITDA impact is expected in the energy division amid operating issues, clean-up of historical jobs and higher fleet diesel costs. Baltec is expected to experience a -$1.5m impact from delayed deliveries, disruption to logistics and slower Middle East tender awards. The company remains confident it has identified and addressed its ERP issues and asserts it is still experiencing strong demand and revenue growth. Bell Potter has retained its Buy rating. Target is reduced to $0.21 from $0.35.

Fisher & Paykel Healthcare's FY26 profit increased 28% (constant currency) to NZ$468m, at the top end of NZ$450-470m guidance, and in line with expectations. Analysts highlight hospital hardware as the key surprise, up 27%, driven by fleet replacement of the Airvo 3/950 system. Management guided to improving gross margins in FY27 despite tariff impacts and higher freight and raw material costs linked to Middle East geopolitical tensions. UBS sees valuation constraint limiting much further upside, for now. Morgan Stanley explains FY27 guidance incorporates ongoing tariff, freight and raw material headwinds, though management still expects further gross margin expansion.Two Buy ratings versus two on Neutral/Hold.

Morgan Stanley notes FleetPartners Group's first half results were ahead across the board, with the new business writing (NBW) trajectory improving and "marginal growth in NBW" reiterated for FY26. A second half skew now looks more achievable with strong exit momentum. The April pipeline is the largest in last 12 months and 27% above the first half monthly average. Thus far, one Buy-equivalent rating.

Gentrack's first half result was largely in line with expectations following the recent market update. Bell Potter explains earnings were impacted by a decline in projects wins, as pre-reported. Group revenue slipped by -2% y/y and recurring revenues grew 11.6% while non-recurring revenue fell -30%. Margins came under pressure, falling by around -440bps y/y to 7.2% as the workforce was put on hold as execution on the pipeline was delayed. Management reiterated FY26 revenue and EBITDA guidance. Morgan Stanley points out the contribution from the newly-acquired Factor added a further small negative to sales and earnings, albeit this was skewed to a non-recurring revenue and should become a smaller part of the base going forward. One Buy and two Hold-equivalent ratings.

Goodman Group's Q3 update disappointed because no new data centre contracts or co-financing agreements were included. Management only slightly upgraded FY26 guidance to at least 9% growth (from 9%). Otherwise, management gave plenty of indications new contracts are under negotiation, and those financing agreements will be announced too. UBS highlights management indicated performance fees could support stronger growth depending on final valuations. This broker believes earnings visibility continues to improve, supported by accelerating industrial development activity and the depth of Goodman's global data centre pipeline. Ord Minnett has upped the yield on cost forecast for the development pipeline to 10% from 9.5%. Morgans' key takeaway was data centre capex needs are most likely to surpass capital market funding capacity. This favours those developers with secured power, such as Goodman. Six Buys with Ord Minnett on Neutral/Hold.

In keeping with market volatility around earnings reports, GrainCorp's share price tumbled over -13% following the release of H1 financials. That had more to do with investor concerns about weather forecasts and impact on future crops. As noted by Morgans, the result was largely in-line, albeit weak. Underlying earnings (EBITDA) fell -32%. While better than Ord Minnett expected, this analyst pointed to the erosion of the core cash position, ongoing farm input disruptions from the Middle East conflict, and a poor outlook for the FY27 crop. Macquarie observed elevated working capital to unwind during 2H26, supporting a recovery in core net cash, although weaker operating cash flow and the absence of a special dividend were viewed as reflecting a more uncertain outlook. Management retained FY26 guidance. Three Hold ratings, including one downgrade from Accumulate, plus one Accumulate rating.

Infratil released a robust performance, but higher capex guidance weighed on sentiment and forecasts, resulting in disappointing FY27 guidance. Valuations increase following strong contract wins at CDC. Morgans highlights data centres, including CDC, were the main earnings drivers but renewables are expected to become a major contributor going forward. Macquarie notes management has signalled a further $1bn of asset sales where portfolio positions unable to be scaled under Infratil ownership and higher return opportunities lay elsewhere. UBS expects new contract wins in the next six months and highlights a relative valuation discount vis-a-vis NextDC. Four Buy ratings.

James Hardie Industries' FY26 result was broadly in line with market expectations, with growth largely driven by the Azek acquisition while underlying market conditions remain subdued. FY27 adjusted EBITDA guidance of US$1.45-1.5bn was provided. Synergies with Azek are on track and have been reiterated. The company expects a return to organic growth in siding and trim, and an above-market performance in decking. Macquarie suggests the outlook statement points to a weak but stabilising US market albeit with US war related costs of -US$80m-US$100m. Citi emphasises a prolonged war in the Middle East could challenge the outlook. Four Buy ratings and one Neutral/Hold.

Life360 shares slid by over -10% following the release of Q3 financials that revealed softer trends in monthly active users (MAU). Macquarie highlighted strong 1Q Paying Circles growth despite softer 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. Citi cautioned near-term MAU trends remain uncertain and the top end of guidance appears optimistic. Ord Minnett downgrades expected MAU growth to between 17%-20% from 20%. All agree, the market is likely to stay focused on the MAU metric. Six Buy-equivalent ratings.

Light & Wonder's Q1 performance missed consensus, mostly because SciPlay disappointed with adjusted earnings (AEBITDA) of -$66m (negative) below a positive $75m estimate while corporate costs were higher. Management reiterated FY26 guidance for mid-to-high single-digit growth in adj earnings (AEBITDA). UBS comments underlying performance remains stronger than headline numbers suggest, with several temporary factors including legal costs, UK iGaming tax changes and Grover Indiana setup costs weighing on results. Macquarie agrees with accelerating the share buyback in the second quarter, which should provide a 5% annualised EPS accretion. While forecasts and target are reduced, seven out of seven ratings remain on Buy.

Liontown Resources reported a smaller-than-expected first-half FY26 loss as lower tax charges and inventory movements offset higher depreciation. FY26 production guidance for Kathleen Valley was reaffirmed, targeting a 1.5Mtpa run rate by the March quarter and 2.8Mtpa by June 2027. Morgans notes the balance sheet strengthened materially following last year's equity raising and conversion of the LG Energy Solution notes. Morgans and Citi upgrade to Neutral/Hold, Ord Minnett upgrades to Accumulate from Hold. Bell Potter and UBS have a Buy. Macquarie is on Neutral. In the aftermath, both Macquarie and UBS upgraded lithium pricing forecasts.

Better investment-related income across markets, commodities and MacCap supported a record half for Macquarie Group, handsomely beating analysts forecasts. Citi notes asset realisations featured strongly, led by the sale of the meters business but also other technology and infrastructure exits. Macquarie is seen hoarding capital to pursue opportunities. UBS points out that while the guidance remains strong, investor attention may shift to earnings growth for FY27, given the elevated base and questions around the sustainability of these results. So far, two Neutral/Hold ratings.

Myer's FY25 result broadly met Morgan Stanley's expectations, but the accompanying trading update proved rather weak. Ord Minnett had higher expectations. Management's guidance has been maintained for costs. The new marketplace platform is on track for launch in May with expanded product offerings. Morgan Stanley notes ongoing strength in Just Jeans was offset by other brands. A new analyst in charge at Ord Minnett has literally slashed its price target. One Buy and one Hold.

Before Budget-related concerns hit the local banking sector, National Australia Bank released H1 financials that slightly fell short of expectations. Revenues underwhelmed as average interest-earning assets were reduced by translation from NZ dollars while cost control featured as a highlight. There was also impact from a large software amortisation charge. Macquarie notes credit quality trends were weaker with non performing loans up around 5bps q/q. NAB management offered stronger guidance for 2H26 including a circa 5bps tailwind from its replicating portfolio but competitive pressures are anticipated to drag again on 2H26 NIM of 1.84%. Both Morgans and Ord Minnett upgraded to less negative ratings, leaving a tally of one Buy, two Neutral/Holds and three Sell-equivalent ratings.

Significantly lower coal prices and higher depreciation expenses caused New Hope's H1 performance to significantly miss market expectations. The board tried to offer compensation via a materially higher dividend payout. Broker don't seem to fussed about it, as they continue to see New Hope as well-positioned to deliver low-cost, high-margin cash flow and able to capitalise on a rebound in coal prices, which will then drive stronger cash flow and shareholder returns. War in the Middle East has raised the alarm over energy security and thermal coal is one of the obvious beneficiaries. Both Bell Potter and Macquarie upgrade to Neutral/Hold, joining Morgans and Ord Minnett for four out of four.

Newmont Corp's quarterly revealed gold, silver and copper production above expectations, on lower costs. Operating earnings and free cash flow exceeded forecasts by 16% facilitating a rise in the gold producer's share buyback program by US$6bn. Morgans concludes the result reinforces the company's position as a high-quality cash-generating gold producer with a strong balance sheet and increased capacity to return capital to shareholders. Macquarie highlights higher Brent oil prices would add to the gold producer's costs. At around US$110/bbl, that would add an estimated -US$240m to the cost base, or -US$48/oz, or circa -3% in total. Five brokers, five Buy-equivalent ratings.

News Corp's quarterly update beat consensus on revenue and earnings (EBITDA). Among the stand-outs identified are Dow Jones earnings (EBITDA) with risk and energy the main earnings drivers. Ongoing geopolitical conflicts are attributed as the factor underpinning resilient growth. Move was also highlighted with a beat at the top line due to premium listing in an otherwise weak US housing market. NewsMedia remained "soft" and was affected by the launch of California post. Thus far, UBS on Buy.

Nufarm's earnings landed at the upper end of guidance, but some analysts had higher expectations. Morgans highlights Seed Technologies delivered a particularly strong performance. The company enjoyed meaningful margin expansion despite lower sales. Management has upgraded Seed Technologies guidance. Macquarie was disappointed due to higher interest costs and a softer result from crop protection. This broker warns recent rains in Australia are positive but a looming El-Nino is a potential headwind in coming months. Both Citi and Bell Potter laud the future benefits from cost savings. Bell Potter anticipates strong FY26 underlying EBITDA growth as positive trading trends continued into April and May. Citi refers to ongoing concerns around earnings quality, competitive intensity, elevated raw material input costs and the potential impact of El Nino weather conditions. UBS has upgraded to Buy, joining Morgans and Bell Potter versus two Neutral/Hold ratings.

Oceania Healthcare delivered a strong beat due to higher sales volumes over 2H26 with new sales up 9% y/y and resales up 40%. Margins were noted for coming under some slight pressure to boost the sales momentum while applications are up on the prior year and months. Positively, net debt fell -17% on the prior half and gearing is at 30%. Macquarie (Buy-equivalent) notes free cash remains negative but should be assisted by working capital release in FY27-FY28. Target price moves to NZ$1.06 from NZ$1.04 with EPS forecasts tweaked lower.

First half results from Orica beat expectations across all business units, with Morgans noting cash flow was much stronger than previously feared and the balance sheet is in good shape. Macquarie notes management remains confident in securing a cost-effective North American ammonium nitrate supply in coming months. Gold remains the company's largest end market exposure and there is strong demand across blasting, SMC and digital. Morgan Stanley suggests Middle East impacts remain manageable, and faster-growing Digital and Specialty Chemicals continue to lift earnings quality and resilience. Bell Potter adds the majority of benefits from a $100m cost-out program underway is expected to be realised in FY27 and beyond. Seven from seven Buy ratings.

Pantoro Gold posted a first half result slightly better than some forecasts and in line with others, but production guidance for the full year has been downgraded by -15%, driven by multiple factors such as rain at Scotia, equipment/personnel availability, as well as a transition to a new underground mining contractor. A more conservative approach from analysts has reset expectations. With gold prices elevated, Morgans still assesses the leverage to spot prices is significant for an unhedged and debt-free producer. Three Buy ratings with Bell Potter on Hold.

Premier Investments delivered first half results that were in line with guidance. Macquarie welcomes the greater disclosure in Peter Alexander earnings amid improved trading in the UK. Smiggle disappointed (yet again) and management announced a reset strategy under a new Managing Director appointed. A transition period is expected to weigh on margins despite stable FY26 guidance. Against a challenging consumer backdrop, and with increased competition, UBS argues execution risk is high regarding the strategic reset for struggling Smiggle. Bell Potter highlights the stock is trading at a discount to its coverage, considering the retail division has two global brands, along with equity investments, a land bank and cash position that supports M&A. Four Buy ratings versus Citi on Neutral/Hold.

REA Group's Q3 performance slightly underwhelmed against consensus, but April trading proved stronger-than-expected and management suggesting operational costs can be lowered in face of forward-looking uncertainty was welcomed on the day. Both Citi and UBS attribute much of the 3Q26 misses on timing issues. UBS also mentions impact from -2% deferral in Resi. Thus far, two Buy ratings.

ResMed's Q3 slightly beat forecasts on most metrics, amidst plenty of market doubts and speculation about margin pressures and where potential disappointment might stem from. But while analysts covering the company unanimously label it a "robust" and "better-than-expected" performance, the shares met with selling pressure. Was it because of a slightly dilutive acquisition? Or maybe because long serving CFO, Brett Sandercock, is to retire? We might never find out. Ex-US performed better than the US market. Citi highlights the company is now in deal-making mode. Six Buys out of six.

Ryman Healthcare saw a strong turnaround delivered in existing operations over FY26, yet there remains a negative in buyback drag, Macquarie notes, while Care was a standout, driving FY27 upside. Improvements in sales cadence are evident with 2H26 resales contracts of 440 up 16% half on half, contracted resale stock up 15% and uncontracted stock stabilising. Cash release potential appears well above $500m targeted by FY29 which will reduce net debt and gearing and allow for measured growth. Macquarie retains Outperform (Buy-equivalent) on valuation, signs of improving resale trends, and strong execution of cash improvement, particularly in Care. Target rises to NZ$2.86 from NZ$2.80.

Select Harvests' interim performance fell short of expectations but both Ord Minnett and Bell Potter remain confident in a record performance for the second half, supported by a substantial crop and record third-party volumes, coupled with a strong global almond price. This prospect has provided the company with the financial flexibility for a 10% share buyback and reintroduction of dividends, earlier than Ord Minnett had expected. Bell Potter sees an obvious offset for elevated drying costs and notes management outlined expansion plans to lift processing capacity by FY30. Two Buy ratings.

Serko's FY26 loss proved larger than anticipated, as higher opex and a lower capitalisation ratio weighed on earnings (EBITDA). Management's FY27 revenue guidance equally underwhelmed. Citi analyst have nevertheless taken a positive view as they still expect revenue growth to accelerate in FY28 as US Defined Corporate revenue scales further and Serko.ai begins contributing to monetisation. Serko's FY26 result shows ongoing investment in strategic opportunities, Ord Minnett highlights, while adding FY27 spending guidance exceeded market expectations despite progress across Serko AI, Booking.com for Business and US corporate client wins. Two Buy ratings.

Synlait Milk's release of interim financials showcased yet another weak performance, and price targets are falling further in response. Macquarie highlights surplus milk processing and inefficiencies drove a sharp gross profit decline. Recovery is expected to take time, as manufacturing execution must improve to restore margins and profitability. Valuation is considered 'cheap' but related to ongoing execution risks and rising debt. Synlait Milk should expect pressure on its balance sheet to ease following the upcoming sale of North Island assets, UBS asserts, although EBIT improvement is likely to be restricted by a2 Milk's internalisation of the English-label infant formula manufacturing in FY27/FY28. Two Sell ratings with Bell Potter on Hold.

TechnologyOne had upgraded guidance at the AGM in February, showcasing both management's confidence when the world was focused on AI threats and increased visibility in its growth trajectory. The interim result was not 100% perfect, with group sales slightly underwhelming, for example, but that confidence in growth remains undeterred. Guidance has been reiterated. Ord Minnett commented early indicators suggest the company's Plus business is tracking ahead of forecasts with record adoption and evidence of annual recurring revenue upside. Combined with its usage-based pricing model and 35-plus years of workflow data, Ord Minnett believes advances in AI are enhancing the company's defensive qualities related to AI disruption rather than adding a risk of displacement. Others don't disagree with that assessment. Four Buys and Morgans has upgraded to Accumulate from Hold.

A remediation provision for another pricing error and softer top-line momentum tempered an otherwise solid 1H26 result for Tower, Citi notes. Management downgraded FY26 gross written premium (GWP) growth guidance to low-single digits from 5%-10%, also raising concerns on the delivery of its medium-term target. While regulatory risks remain, Citi highlights supportive home unit growth of 9% in 1H and expects stronger GWP growth when the insurance cycle turns. Macquarie suggests the gross written premium guidance is potentially too high, with management pointing to the Westpac partnership and Kiwibank as tailwinds for 4Q26. One Buy rating and one on Neutral/Hold.

Tuas reported underlying EBITDA of $42m (excl. transaction costs of -$10.5m), up 27% yoy and ahead of analysts' forecasts. The 'beat' was driven by stronger than expected revenue ($5m higher) partially offset by lower than expected gross margin. No fresh news was forthcoming on the M1 transaction other than to mention engagement with IMDA remains ongoing. As Citi points out, this deal remains the number one catalyst for the stock. Morgan Stanley suggests there is a range of incremental synergy opportunities if the M1 deal is completed, and the catalyst will be the timing and completion of it, following a lengthy process. Two Buy ratings.

Web Travel released a stronger-than-most-forecasts performance, but the Middle East disruptions and FX headwinds are weighing on the outlook as the Middle East takes up a disproportionately larger component of the business, at around 11% of total transaction value versus peers at low single digits. Ord Minnett highlights the company continues to win market share against a challenging macro backdrop. Citi believes management is "controlling the controllables" effectively and notes revenue margin momentum remains encouraging. UBS continues to see valuation support. Morgans upgrades to Buy from Accumulate following share price weakness. Elsewhere, we see four Buy ratings and one Neutral/Hold.

Webjet Group posted a FY26 result that was weaker than Ord Minnett expected, reflective of a deteriorating operating environment in the fourth quarter. Morgans notes it was strictly taken in line with guidance, but weak nevertheless. Both brokers have taken a chainsaw to their forecasts reflecting weaker trading conditions and ongoing investment in the business. Ord Minnett highlights the FY27 outlook is affected by challenges in both economic and industry conditions amid materially lower airline commissions and surcharging payment bans. Near-term catalysts remain elusive in the absence of a return of takeover interests. Separately, the company announced Virgin Australia ((VGN)) will substantially reduce commission payments on Virgin Australia products or for achieving specified performance targets, effective July 1.

West African Resources' 2025 performance missed Macquarie's forecast by -7% on higher tax expenses and higher other costs. Operating cash flow including exploration beat Macquarie and consensus by 16%/9%, respectively, with total capex lower than both estimates. Management did not offer any guidance for 2026 and has indicated updated reserves, resources and a 10-year production target will be released by the end of 1Q2026. One Buy.

Westpac's interim reports had pluses and minuses, but proved all-in-all broadly in line with expectations as revenue trends were weaker, though partially offset by better cost control. Morgan Stanley sees emerging risks of an earnings downgrade cycle, with the volume/margin trade-off becoming more apparent and limited scope for cost improvements relative to peers. Macquarie states risks are building for banks generally around slowing volumes from higher rates and a softer economy, alongside more intense competition and deteriorating credit quality. Citi questions whether management is sacrificing NIMs for higher growth than peers. Citi on Neutral stands out against four Sell-equivalent ratings.

Xero's FY26 was overshadowed by an announcement from Anthropic, which explains the heavy sell-off in its shares on the day. That was corrected on the following day as the result itself, if anything, was mostly better-than-expected. Of course, the key question for investors remains whether AI is more an opportunity or a threat for the company. Morgans concludes it is early days for AI, although management appears confident enough to have announced a buyback and hint at potential capital management in FY28. Most analysts lauded the accelerating growth in the US, where acquired Melio also performed strongly. Management's FY27 guidance is generally viewed as conservative. Six out of six Buy ratings.