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

Bell Potter rates A2M as Hold

Bell Potter points to a 1H26 net profit after tax beat for a2 Milk Co above the broker's forecast of NZ$112.1m, with revenue up 11% y/y and earnings (EBITDA) rising 30% y/y, above expectations.

Infant milk formula revenue grew 14% and English label rose 21% y/y, while lease adj operating cash flow rose to NZ$92.3m from NZ$75.9m a year earlier.

The analyst raises EPS forecasts by 8% for FY26 and 5% for FY27 with a slightly lower target of $9.55 from $9.70 previously and an unchanged Hold rating. The stock is likely to benefit from a "flight to safety" in the short term, Bell Potter states.

Shaw and Partners rates ASK as Hold

Abacus Storage King missed Shaw and Partners' forecast for 1H26 funds from operations at $41m, below the expected $44m, due to higher than anticipated costs including land tax and insurance.

Top line was in line, achieved despite some softness from NZ and forex translation impacts.

Storage revenue rose 3.7% and occupancy remains above 90% with revenue per available metre for established stores up 1.5%, with management using dynamic pricing, the analyst notes this has boosted the metric to 2.9% growth in Australia.

Gearing stood at 31.9% at end of December with funding capacity over $500m assuming gearing at the upper end of the target range, 40%.

The analyst retains a Hold, Medium risk rating with an unchanged target of $1.65.

Citi rates AZJ as Neutral

In a further review of Aurizon Holdings' interim results, Citi raises its target to $4.00 from $3.45 on modest forecast earnings upgrades and after allowing for an increase in the dividend payout ratio to 90%.

A summary of Citi's initial research follows.

Citi notes Aurizon Holdings' 1H26 group earnings (EBITDA) was a beat by 3% on first glance, with coal earnings (EBITDA) around 12% better than expected and an improvement in yields with lower operating costs of -4%.

Bulk earnings (EBITDA) was also better by 5% due to higher volumes and the absence of previous impacts a year ago.

Network was boosted by a change in accounting to smooth revenue, the analyst explains.

While the overall result was a beat, Citi expects the boost from coal to dissipate in 2H26, but the DPS was a nice surprise and could reflect a change in capital management for the future.