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

Bell Potter rates CIP as Hold

Centuria Industrial REIT delivered FFO/share of 18.2 cents in FY26, slightly below Bell Potter's estimates. FY27 guidance is for FFO/share of 18.8 cents-19.2 cents.

The broker found the result "solid" with the forward earnings outcome to be driven by two leasing campaigns, Fairfield East and Bundamba. Estimates for FY27-FY29 are adjusted upwards by 2%-3%. Hold maintained. Target price rises to $3.35 from $3.25.

Citi rates CSC as Buy

On further analysis post Capstone Copper's 2Q26 results, Citi raises the target price to $18.70 from $16.60 and reiterates its Buy rating on the stock.

The analyst emphasises the market is too focused on the risks around higher sulphuric acid costs and margin pressures from the Chilean operations.

Any impacts are expected to be offset by Mantoverde with lower acid exposure, more robust by-product credits, higher copper prices, and the tailwinds from Mantoverde Optimised.

Earnings (EBITDA) forecasts are raised by 7%-21% across FY26-FY28 with production forecasts retained in line with consensus.

Capstone Copper is considered an "attractive" copper growth story with a strengthening balance sheet.

Morgans rates SGH as Buy

Morgans believes SGH faces a consolidation year in FY27 after guidance for flat to low-single-digit EBIT growth fell below expectations, largely due to currency pressure and softer capital sales at WesTrac.

FY26 underlying EBIT rose 1% to $1.55bn, with margins expanding 40bps to 14.7% and EBITDA cash conversion reaching 99%.

The broker expects earnings momentum to strengthen from FY28, supported by first gas from Crux, property realisations and potential acquisitions, with around $2bn of additional debt capacity available.

FY27-FY29 EPS forecasts are reduced by -4%, -4% and -3%, respectively, while the $500m buyback should provide modest earnings accretion.

Morgans retains Buy but lowers the target to $50 from $52.75, with the longer-term investment case supported by Boral margin improvement and future capital deployment.