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

Citi rates EDV as Downgrade to Neutral from Buy

Citi lowers its target for Endeavour Group by -60c to $3.70 and downgrades to Neutral from Buy, citing concerns around softer consumer demand impacting retail and hotel sales.

Commentary notes higher interest rates, fuel costs and inflation will likely pressure household spending and reduce alcohol consumption.

The broker also points to additional headwinds from rising freight costs, with limited ability to pass these through in a weaker environment.

Earnings revisions include lower sales growth and margin assumptions, resulting in Citi's FY26 profit estimate falling -4% below that of consensus.

Bell Potter rates KGN as Hold

Kogan.com delivered a first half result that beat Bell Potter's estimates with adjusted EBITDA margins of 7.5%. November and December in particular were strong, with 12% growth in gross sales and despite cycling significant comparables.

Bell Potter increases estimates for net profit in FY26 by 11%. Target is raised to $3.80 from $3.30 and a Hold rating is maintained.

The broker remains cautious about the marketing investment required to cycle second half comparables in a challenging and competitive e-commerce environment.

Macquarie rates WBC as Underperform

Macquarie comments Westpac’s major technology transformation program Unite remains on track and within budget, with management confidence a key positive despite ongoing execution risk.

It's felt AI may support delivery and offer upside, though benefits remain early and unproven.

Commentary highlights risk of under-investment outside Unite, with spending skewed toward remediation rather than growth, potentially leaving Westpac behind peers.

Macquarie's valuation concerns relate to a premium valuation multiple despite a weaker earnings outlook and higher re-investment needs.

Macquarie retains an Underperform rating and target of $33.50.