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

Bell Potter rates EIQ as Initiation of coverage with Speculative Buy

Bell Potter initiates coverage of EchoIQ with a Speculative Buy rating and $1.65 target. First off among catalysts is the pending approval of the 510(K) submission for  EchoSolv HF, focused on left ventricle disease and this is expected in the next month or so.

If approved, the broker points out the product is likely to attract keen interest from cardiology buyers around  the world and will be adopted by the Mayo Clinic.

The AI-driven software is used to analyse echocardiographic data and aid clinicians in diagnosing serious cardiac disease including aortic stenosis and left ventricle dysfunction.

Citi rates JBH as Buy

Citi notes ABS retail categories rose 5.7% y/y in May compared to April, up 4.8% y/y. Food was robust at 4.3% growth, while the fall in Alcohol & Tobacco eased to around -4%, against previous months.

The analyst points out the Tobacco trend aligns with market feedback of some "stabilisation" in the market.

Markedly, against a backdrop of weak consumer confidence, discretionary categories remained strong. Household goods rose 6.4% y/y, Clothing & Footwear up 7.2% were the stand outs, the broker highlights.

Lower than expected fuel prices are believed to be the catalyst for the strength in spending data. Qld and WA were the strongest.

Citi's top stock picks are Coles Group ((COL)), Buy rated with a $23 target and JB HiFi, Buy rated with a $85 target.

Macquarie rates WOR as Outperform

Worley has disclosed its earnings impact from the Middle East conflict will be "up to -$60m" versus April's -$30-40m assumption. Importantly, notes Macquarie, impacts are contained to the Middle East.

Worley should be a beneficiary of the Gulf oil & gas rebuild as conflict ends, along with return of deferred growth projects. The market will require evidence that deferred projects are resuming -- Macquarie thinks this should occur during 1H27 assuming a durable peace deal.

After a tough FY26 featuring war and tariffs, Macquarie believes the broader environment should get better from here. The question is one of timing. Target falls to $12.00 from $13.70, Outperform retained.