OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Macquarie rates AOV as Outperform

Amotiv delivered a "solid" 1H26 result, beating Macquarie's expectations despite softer new vehicle sales trends weighing on market sentiment.

The broker highlights a resilient Powertrain and Undercar (PTU) performance, and improving Light Parts & Electrical (LPE) outcomes supported by Amotiv Unified. Pressure in 4WD margins is expected to ease in the second half.

FY26 guidance is unchanged at around $195m EBITA. The analyst points to multiple tailwinds emerging into FY27 including offshore growth, FX support and cost-out benefits.

With valuation seen as attractive below 9x FY27 PE, confidence in the medium-term outlook remains intact. Target rises to $11.90 from $11.66. Outperform maintained.

UBS rates SHL as Neutral

After a suspension period, UBS re-establishes cover of Sonic Healthcare with a Neutral rating and a lower target price of $21.80 from $29.40.

The analyst believes Sonic is primed for double digit revenue and earnings growth in FY26 on the back of several European acquisitions, while the retirement of long-standing CEO raises some uncertainty, with more information around the new CEO's vision being sought.

UBS lowers EPS estimates from prior forecasts by -1% for FY26 and -16% for FY27.

Citi rates TCL as Buy

Citi notes the share prices of infrastructure stocks under coverage have lagged amid rising Australian bond yields, but analysis shows defensiveness improves as correlations weaken at higher yield levels.

Overall, the broker believes bond yield impacts are largely priced in, creating a more attractive entry point across the sector.

Solid cash flow growth and potential inorganic upside support Transurban Group's appeal, the analyst notes, reinforcing its relative positioning.

With yield pressures easing in sensitivity, the stock is viewed as well placed despite recent sector weakness.

Buy. Target unchanged at $16.10.