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

Bell Potter rates EGL as Buy

Environmental Group now expects FY26 normalised EBITDA in the range of $8.5–9.0m, compared with prior guidance of 15–20% growth which translated to $12.7–13.5m.

A -$2.5m estimated EBITDA impact is expected in the energy division amid operating issues, clean-up of historical jobs and higher fleet diesel costs. Baltec is expected to experience a -$1.5m impact from delayed deliveries, disruption to logistics and slower Middle East tender awards.

The company remains confident it has identified and addressed its ERP issues and asserts it is still experiencing strong demand and revenue growth. Buy rating retained. Target is reduced to $0.21 from $0.35.

Citi rates LIC as Neutral

Privately-owned Hometown Australia has increased its stake in Lifestyle Communities to around 13.2% from 9.8%, with shares acquired throughout May.

Citi sees potential for a positive share price reaction and expects investor sentiment to remain skewed toward takeover potential.

Commentary notes Lifestyle Communities trades at a significant discount to book value relative to land lease peers.

Citi retains a Neutral rating and raises its target to $5.40 from $5.10.

Citi rates TWR as Buy

A remediation provision for another pricing error and softer top-line momentum tempered an otherwise solid 1H26 result for Tower, Citi notes.

Management downgraded FY26 gross written premium (GWP) growth guidance to low-single digits from 5%-10%, also raising concerns on the delivery of its medium-term target.

While regulatory risks remain, the broker highlights supportive home unit growth of 9% in 1H and expects stronger GWP growth when the insurance cycle turns.

Tailwinds from the Westpac partnership commencing July 1 are also expected to support premium growth.

Citi retains a Buy rating and $1.75 target, down from $1.85. EPS forecasts for FY27 and FY28 were lowered by -5%.