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

UBS rates ABB as Buy

Aussie Broadband has reiterated FY26 earnings guidance despite slower-than-expected subscriber growth, with UBS noting net additions in 2H26 of around 28k to date are tracking below both its forecast (40,8k) and consensus expectations (around 36k).

The analyst attributes the softer growth to the integration of More, Tangerine, AGL Telco ((AGL)) and other acquisitions, alongside intense industry competition and discounting.

UBS remains encouraged by stable earnings guidance, which implies margin improvement from a more favourable customer mix, disciplined cost management and pricing actions ahead of July's NBN wholesale price changes.

The migration of More and Tangerine customers remains on track for completion this month, while the AGL Telco migration is expected to begin in 1Q27 and contribute earnings earlier than initially anticipated.

Buy rating and $6.20 target price maintained, with no changes to earnings forecasts. Analyst coverage is transferred to William Park.

Macquarie rates ELV as Upgrade to Outperform from Neutral

Lithium prices may have corrected more than -15% from the peak in early May, yet Macquarie remains constructive on market fundamentals.

The broker updates its price forecasting methodology, and higher spodumene and lithium carbonate price assumptions drive material upgrades to earnings estimates across lithium-exposed coverage for the next few years.

Elevra Lithium is upgraded to Outperform from Neutral as the outlook is improving while the company transitions to a funded North American lithium growth platform from just a single asset story. Target is raised to $14.50 from $13.50.

UBS rates SHL as Neutral

Sonic Healthcare has completed the sale of its Brisbane laboratory for $445m, generating a $300m capital gain, although the tax impact was reduced through the use of accumulated capital losses.

UBS expects the transaction to have a modestly negative earnings impact, as lease costs are likely to exceed interest savings from debt reduction, though the sale releases capital to support the business and further asset disposals are planned over the next 12 to 18 months.

The broker also highlights a new headwind from the Fair Work Commission's wage ruling for health professionals, which is expected to place upward pressure on domestic labour costs over time.

Earnings forecasts have been lowered to reflect both the wage impact and a stronger Australian dollar against European currencies.

UBS retains a Neutral rating and lowers its target price to $19.60 from $21.10.