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

Bell Potter rates ASB as Hold

Austal's FY26 earnings (EBIT) loss of -$125m was -8% worse than Bell Potter and consensus expected, driven by -$251.3m of onerous contract costs in the US business.

It's noted Hanwha was aware of the recent onerous contract issues before submitting its takeover proposal, increasing the broker's confidence the transaction will proceed.

Australasia earnings of $85m compared to the consensus estimate of $68m, driven by ramp-up in defence shipbuilding and support programs, as well as $15m in one-off benefits, the analysts explain.

Bell Potter expects Austal to return to profitability in FY27, though it highlights execution and labour risks as Australasian shipbuilding ramps up. Target falls to $4.70 from $5.00. Hold rating unchanged.

Citi rates EDV as Buy

Last week, Endeavour Group CEO Jayne Hrdlicka acquired around $1m shares on market at an average price of $3.09.

Citi points out this is the first meaningful on-market purchase since becoming CEO of the group.

The analyst believes this indicates a "positive vote" of confidence in the outlook for Endeavour. Notably, the FY26 result showcased a return to sales growth at Dan Murphy's which has come in better than expected.

Buy. Target $3.89.

Morgans rates MVF as Downgrade to Accumulate from Buy

Monash IVF provided a FY26 result that was below revised guidance at the net profit line, although this included a -$1.4m write-off of pre-paid assets.

After a challenging year, Morgans notes there was no quantitative FY27 guidance, although the company expects earnings growth amid volume improvements and cost efficiencies.

The broker makes "modest" downward revisions to FY27 earnings estimates and downgrades to Accumulate from Buy. Target edges up to $0.82 from $0.80.