RBC Capital upgraded Collins Foods (CLLFF) to Outperform from Sector Perform with a price target of A$11.70, up from A$8.50. The company’s first 18-weeks trading update was strong across the board, with 6.7% sales growth ahead of the firm’s 5.5% estimate as its Australia business has benefited from promotional effectiveness and menu innovation, the analyst tells investors in a research note. Collins’ FY26 net profit growth guidance was reiterated, but RBC is optimistic on the setup for earnings growth driven by top-line growth and gross margin tailwinds, the firm added.
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