Arafura Rare Earths is advancing its Nolans project as a major non-China NdPr supplier, supported by strategic offtakes, sector tailwinds, and improving technical momentum, though investors still face key risks including funding, execution delays, and rare earth price volatility.
We believe Collins Foods (ASX: CKF) is entering a multi-year earnings recovery cycle anchored by margin repair in Australia, operational rejuvenation in Europe, clear line-of-sight to double-digit EBITDA growth, and an improving balance sheet that gives management options rather than constraints. The HY26 results demonstrate that CKF is moving decisively out of the inflation shock period that suppressed margins and elevated operating costs between 2022–2024. With commodity and utilities inflation easing, labour efficiencies improving, and price/mix still resilient, we see structural tailwinds forming beneath the company’s operating base.
We view Telstra as a highly resilient, structurally advantaged cash-generating business within the Australian equity market, offering strong earnings quality and downside protection despite limited headline growth. Its focus on network leadership, disciplined capital management and monetisation of digital and infrastructure assets supports stable free cash flow and reliable capital returns, particularly in a softer macro environment. We believe the market continues to undervalue Telstra’s leverage to long-term data demand, the durability of its mobile economics, and the embedded optionality in InfraCo and enterprise digital services.
Transurban is a high-quality global infrastructure franchise with long-duration, inflation-protected cash flows, strong pricing power and irreplaceable assets. The market remains overly focused on macro headwinds, overlooking the durability of its concessions, recovering mobility and improving cash-flow conversion. As operational risk declines and cost pressures fade, Transurban is well positioned to deliver asymmetric upside through FY26–FY28 via compounding distributions and operating leverage.
Commonwealth Bank of Australia (ASX: CBA) remains the undisputed heavyweight of the Australian financial system, dominant in retail banking, advantaged by scale, and well-positioned to monetise the next phase of household re-leveraging as rates peak and credit growth stabilises. Our view is simple: CBA’s franchise resilience is undervalued. While the macro backdrop remains mixed and competition in mortgages remains intense, the bank continues to deliver sector-leading returns, defend margin leadership, and maintain one of the strongest balance sheets globally.
Rio Tinto appears to be entering a strategically attractive new phase, evolving beyond its historic reliance on Pilbara iron ore into a diversified, multi-commodity growth platform. With expanding exposure to copper, lithium, high-grade iron ore and aluminium, alongside a stabilising cost base and strong balance sheet, the company increasingly looks positioned for asymmetric upside through 2026–2028 rather than a mature, iron ore–centric producer.
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