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

Morgans rates DMP as Buy

Domino's Pizza Enterprises’ 1H26 result was mixed at the top line but better on earnings and balance sheet, Morgans notes. Network sales fell -1.6%, -1.1% below consensus, driven by group same-store sales down -2.5% as the new pricing structure and a smaller store base weighed on volumes.

Earnings came in ahead of expectations. 1H26 marks a clear strategic reset for Domino's, with management prioritising a more profitable operating model over near-term volume, Morgans notes.

The broker believes early actions from the new leadership team are directionally sound, although this is a multi-year turnaround and proof of execution is still required. Buy and $25 target retained.

Citi rates NXT as Buy

NextDC reported underlying 1H26 earnings (EBITDA) of $115m, up 9% on the prior year and 7% above the consensus estimate, highlights Citi. The 'beat' was driven by lower costs, explains the analyst, given revenue was in line with forecast.

Reported profit was a -$39m loss, narrower than Citi’s -$66m forecast due to lower depreciation, amortisation and funding costs.

The broker has updated its forecasts following stronger-than-expected 2Q contract announcements of 167MW and now sees around a 10% consensus estimate upgrade for FY28 earnings.

Buy rating kept. Target raised to $19.00 from $18.35.

Macquarie rates RMC as Neutral

Resimac Group achieved a 1H26 headline earnings beat driven by better cost performance following the acquisition of Westpac’s auto portfolio, with group NIM rising circa 3bps h/h to 1.63% and steady volume growth across mortgages and asset finance.

Macquarie notes the Westpac auto portfolio has run off faster than expected, nearly halving to around $0.6bn, which is seen as a potential earnings drag.

A fully franked 9c special dividend was announced in addition to the 4c interim dividend, with the capital return considered as prudent in the current lending environment.

EPS forecasts are increased by 8%/4%/1% for FY26/FY27/FY28 and a 5c special dividend is incorporated into FY26 forecasts.

Neutral with unchanged $1.05 target price, due to limited change to outer-year earnings forecasts.