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

Macquarie rates BPT as Underperform

Macquarie flags Beach Energy's 4Q26 earnings are expected to be affected by a weaker gas market, and highlights circa 30% spot exposure in the East Coast gas portfolio.

The analyst points out Gas Review outcomes have changed the structure of the market and underpinned a rise in uncertainty, while warmer conditions to the start of winter, full storage, lower GPG and LNG maintenance have impacted on prices.

Notably, Waitsia is also facing challenges while the sale of Artisan is viewed as a positive.

EPS forecasts are lowered by -11% for FY26 and -10% for FY27 on reduced production assumptions.

Target price slips to 85c from 88c with no change in Underperform rating.

Citi rates GMG as Buy

Goodman Group will acquire Brickworks' ((SOL)) 50% stake in the Industrial JV Trust for $1.89bn. Citi views this transaction as strategically important given the Trust's exposure to prime industrial land across Australia's major logistics corridors.

The broker notes the sites have above-average power infrastructure, making them well suited to data-enabled logistics, high-throughput distribution and emerging AI-related warehousing applications.

The acquisition strengthens Goodman's already substantial development pipeline, Citi comments, and expands its premium landbank at a time of growing demand for industrial and data center assets. 

Buy. Target $40.

Bell Potter rates REA as Sell

REA Group has outlined expectations for property prices to be flat in 2026 across combined capital cities before rebounding to 5.5% growth in 2027.

The report also suggests that home prices over the long run will be "a few percent" lower than otherwise because of the recent federal budget changes.

The report signals elevated listings activity in Melbourne and Sydney, up between 6-7% in the second half to May, and appears to suggest a buyers' market, Bell Potter noting the two markets combined are 46% of national volumes.

The broker makes no changes to estimates or target multiples in regard to valuation but reduces its terminal growth rate to 4%. Sell rating retained. Target is reduced to $133 from $137.