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

Morgan Stanley rates MQG as Equal-weight

Macquarie Group is selling a portfolio of 7m late-generation smart meters. Morgan Stanley estimates a $700m gain on sale and continues to envisage support from structural growth options emerging from the energy transition and demand for energy from new AI-oriented data centre developments.

The company has recently upgraded its commodities outlook, being well-placed to benefit from the structural rising demand for gas as its commodities division ships gas on 69% of the major US interstate gas pipelines.

Morgan Stanley retains an Equal-weight rating with a $223 price target. Industry view: In-Line.

Morgans rates NWH as Accumulate

Morgans notes stocks within the Developers and Contractors sector have sold off sharply since the Iran conflict, reflecting concerns around a global slowdown and potential fuel-related disruptions.

Assuming conditions stabilise in the near term, the broker's preferred exposures are ALS Limited ((ALQ)), Imdex ((IMD)), Civmec ((CVL)), NRW Holdings and SRG Global ((SRG)).

For a more prolonged recovery, the analyst notes Ventia Services ((VNT)) stands out given its inflation-linked contracts and defensive non-mining exposure, despite a Hold rating.

For NRW Holdings, the Accumulate rating and $6.60 target are unchanged.

All ratings and targets under the broker's coverage of the sector are equally maintained.

Citi rates QAN as Buy

Qantas Airways' capacity is growing year-on-year, notes Citi, though early signs of fuel mitigation are emerging through domestic available seat kilometre (ASK) adjustments.

Fleet optimisation is underway, highlights the analyst, with older A330s and some narrow body flying reduced in favour of more efficient aircraft.

The broker highlights capacity reductions alongside pricing increases could support double-digit growth in revenue per available seat kilometre (RASK) in 4Q26.

Buy rating. Target of $12.10.