Equities

Our analysts provide their sector outlook and top stock picks for June 2023.

Johns Lyng (JLG) has provided earnings guidance for FY23e. We downgrade our recommendation to Hold.

Perenti (PRN; not rated) and DDH have announced that they have entered into a binding Scheme Implementation Agreement (SIA) pursuant to which PRN will acquire 100% of the fully paid ordinary shares in DDH.

We initiate coverage of Retail Food Group (RFG) with a Buy rating at a $0.13/share Price Target. As Australia’s largest multi-brand retail food franchise owner in Quick service restaurants (QSR) and Coffee, the company franchises and operates stores in mass brands, Donut King & Gloria Jeans and other mid-market brands such as Crust Pizza in ANZ, US and EMEA.

We initiate coverage of Austral Limited (ASB) with a Price Target of $3.10 and a Buy rating. ASB is an Australian shipbuilder and defence contractor providing design, manufacturing and support capabilities for defence and commercial customers.

We initiate coverage of COSOL, a company that specialises in digital IT solutions, focusing on enterprise asset management software platforms and data management, with a buy recommendation and a 12 month price target of $1.00.