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

Macquarie rates AGL as Underperform

With power prices yet to rally and now 57% through FY28 pricing, the Macquarie analyst continues to flag large falls are probably in FY28.

The analyst is concerned over the FY28 outlook and believes consensus EBITDA forecasts for flat earnings remain too high, citing the battery offset may not be enough against the significant fall in prices.

The broker expects power pricing is likely to remain below $100/MWh in NSW in FY28 and FY29.

The argument that batteries will replace lost gas and coal earnings, the broker thinks in the near term is "illusionary".

Earnings forecasts are lowered by -1.2% for FY27 and -10.1% for FY28. No change in Underperform rating and $7.94 target price.

Morgans rates EIQ as Speculative Buy

Morgans retains a Speculative Buy on EchoIQ and lowers the target price to $1.10 from $1.85.

The medtech company has received a Not Substantially Equivalent determination on its initial EchoSolv HF 510(k) despite an extensive validated dataset which was in line with FDA guidance, the analyst states.

The update is a decisive "setback" but the timing of the determination indicates the problem can be resolved. The broker points to management's confirmation that a single outstanding statistical point was in question, not a safety or clinical issue.

Nevertheless, both the timing and regulatory risks have risen, which is reflected in the analyst cutting the target price.

Citi rates IFT as Buy

Citi views Infratil's September 16 investor day as a potential positive share-price catalyst.

The broker expects updates on CDC Data Centres' contracting position, development pipeline and income timing.

Energy-infrastructure provider Longroad Energy's data-centre developments and progress on asset sales and funding are also anticipated.

Citi retains its Buy rating and $15.18 target.