Evening Wrap: ASX 200 continues to slip, Coles rallied on earnings and dividend beat

The S&P/ASX 200 closed 36.8 points lower, down 0.41%.

In a nutshell:

• The ASX 200 lower as materials stocks weighed on the index

• Eight of 11 sectors closed lower, with materials (-1.1%) and utilities (-1.0%) leading declines, while consumer staples surged on Coles' strong FY25 earnings

• Market sentiment was dampened by concerns over Federal Reserve independence after President Trump fired Governor Cook, citing alleged mortgage fraud, though she vowed to contest the removal

• Carl is away today so you're stuck with a few highlights from me :)

Let's dive in.

ASX 200 Session Chart

ASX 200 closed down 36.8 points (Source: Market Index)

Markets

• ASX 200 continues to slip, price action has been rather heavy the last three days (down 0.57% last Friday, faded a 0.97% rally on Monday and now down 0.4% on Tuesday)

• Despite the weakness, the pullback remains relatively orderly, especially after an outsized 1.1% rally on Thursday, which pushed the index past 9,000 for the first time on record

• Breadth was relatively weak, with 129 S&P/ASX 200 constituents lower (65%)

• Staples sector surged after Coles (+8.6%) delivered a clean earnings beat, with FY25 NPAT and total dividends around 6-7% ahead of consensus expectations, first eight weeks of FY26 also noted 4.9% supermarket sales revenue growth

• Fortescue slumped 3.9%, closed at session lows after slashing dividends to seven-year lows following a 41% net profit decline to US$3.37 billion due to weaker iron ore prices. This wasn't a massive upset vs. consensus, but a bit of shock value

• Materials sector underperformed with BHP down 1.1% and Rio Tinto flat as iron ore futures retreated alongside concerns about Chinese demand and global economic uncertainty

• Small-cap movers included Integral Diagnostics (+10.9%), Jumbo Interactive (+10.3%), and Boss Energy (+6.4%), while Web Travel fell 5.9% on softer trading outlook

Economy

• RBA Minutes revealed the central bank cut rates in August due to subdued output growth and confidence that inflation was heading sustainably toward target, with potential for "somewhat further" reductions if conditions warrant

• Australia Post suspended most US parcel services immediately ahead of Trump's tariff on low-value parcels taking effect August 29, affecting Australian businesses selling to American customers

Interesting Movers

Trading higher

• +18.11% Kelsian Group Ltd (KLS) – FY25 earnings beat, FY26 guidance slightly ahead

• +16.99% NUIX Ltd (NXL) – Bounce after Monday selloff

• +15.09% Nanosonics Ltd (NAN) – FY25 earnings beat, FY26 margins soft but largely due to tariffs, with mitigation strategies in place

• +12.39% Symal Group Ltd (SYL) – FY25 earnings

• +12.13% Integral Diagnostics Ltd (IDX) – FY25 earnings

• +11.98% Healius Ltd (HLS) – Bounce after Monday selloff

Trading lower

• -13.99% IMDEX Ltd (IMD) – FY25 earnings miss

• -9.77% Ive Group Ltd (IGL) – FY25 earnings miss

• -7.40% Reece Ltd (REH) – Continuation selloff after Monday results, soft FY25 earnings and poor FY26 guidance commentary

• -5.65% WEB Travel Group Ltd (WEB) – AGM flagged weaker-than-expected growth

Broker Notes

AIC Mines (A1M)

• Retained at buy at Bell Potter; Price Target: $0.60

Aussie Broadband (ABB)

• Retained at buy at Citi; Price Target: $6.15 from $4.80

• Downgraded to neutral from overweight at Jarden; Price Target: $5.30 from $4.50

• Retained at buy at Jefferies; Price Target: $6.10 from $4.55

• Retained at neutral at JPMorgan; Price Target: $5.20 from $3.80

• Retained at outperform at Macquarie; Price Target: $5.90 from $5.05

• Retained at overweight at Morgan Stanley; Price Target: $6.00 from $4.40

• Retained at accumulate at Ord Minnett; Price Target: $5.72 from $4.55

• Retained at buy at UBS; Price Target: $6.00 from $4.65

• Retained at overweight at Wilsons; Price Target: $6.85 from $5.15

Abacus Group (ABG)

• Downgraded to underweight from neutral at JPMorgan; Price Target: $1.20 from $1.25

• Retained at buy at Shaw and Partners; Price Target: $1.40 from $1.20

Ansell (ANN)

• Retained at hold at CLSA; Price Target: $39.20 from $37.00

• Retained at hold at Jefferies; Price Target: $39.00 from $33.00

• Retained at neutral at JPMorgan; Price Target: $37.80 from $40.00

• Retained at neutral at Macquarie; Price Target: $33.50 from $33.00

• Retained at equal-weight at Morgan Stanley; Price Target: $32.50

• Retained at outperform at RBC Capital Markets; Price Target: $39.00 from $34.00

APA Group (APA)

• Downgraded to neutral from overweight at JPMorgan; Price Target: $8.80 from $8.30

Abacus Storage King (ASK)

• Downgraded to neutral from buy at Citi; Price Target: $1.50 from $1.73

AUB Group (AUB)

• Retained at positive at E&P; Price Target: $37.10 from $36.80

• Retained at neutral at UBS; Price Target: $36.00

Accent Group (AX1)

• Retained at buy at Bell Potter; Price Target: $1.80 from $1.90

Bendigo and Adelaide Bank (BEN)

• Retained at neutral at Jarden; Price Target: $12.00 from $11.60

• Retained at underperform at Jefferies; Price Target: $9.57 from $9.17

• Retained at neutral at JPMorgan; Price Target: $11.80 from $10.90

• Retained at underperform at Macquarie; Price Target: $10.50 from $10.25

• Retained at equal-weight at Morgan Stanley; Price Target: $11.00

• Downgraded to lighten from hold at Ord Minnett; Price Target: $11.00 from $10.50

• Retained at neutral at UBS; Price Target: $13.00 from $11.00

Bega Cheese (BGA)

• Retained at neutral at UBS; Price Target: $6.00 from $6.15

Bellevue Gold (BGL)

• Retained at neutral at Barrenjoey; Price Target: $1.10

Boss Energy (BOE)

• Retained at underweight at Barrenjoey; Price Target: $1.95

Commonwealth Bank of Australia (CBA)

• Retained at sell at Citi; Price Target: $110.00 from $100.00

Capricorn Metals (CMM)

• Retained at overweight at Barrenjoey; Price Target: $11.00

Chorus (CNU)

• Retained at neutral at UBS; Price Target: $9.25 from $8.50

Coles Group (COL)

• Retained at buy at Citi; Price Target: $23.00

• Retained at neutral at Jarden; Price Target: $20.60 from $19.50

• Retained at hold at Morgans; Price Target: $20.95

• Retained at outperform at RBC Capital Markets; Price Target: $21.00 from $22.00

• Retained at buy at UBS; Price Target: $23.50

Coronado Global Resources Inc (CRN)

• Retained at underweight at Barrenjoey; Price Target: $0.25

Capstone Copper Corp. (CSC)

• Retained at overweight at Barrenjoey; Price Target: $12.00

Corporate Travel Management (CTD)

• Retained at sector perform at RBC Capital Markets; Price Target: $15.00 from $17.00

Core Lithium (CXO)

• Retained at neutral at Barrenjoey; Price Target: $0.11

Dalrymple Bay Infrastructure (DBI)

• Retained at buy at Citi; Price Target: $5.20 from $4.20

• Retained at hold at Morgans; Price Target: $4.73 from $4.70

Deterra Royalties (DRR)

• Retained at neutral at Barrenjoey; Price Target: $4.40

Data3 (DTL)

• Retained at outperform at Macquarie; Price Target: $9.15 from $9.00

• Retained at overweight at Morgan Stanley; Price Target: $8.90

• Retained at hold at Morgans; Price Target: $8.30 from $7.50

• Downgraded to neutral from buy at UBS; Price Target: $8.70 from $8.10

• Downgraded to market-weight from overweight at Wilsons; Price Target: $8.67 from $9.75

Deep Yellow (DYL)

• Retained at neutral at Barrenjoey; Price Target: $1.80

Endeavour Group (EDV)

• Retained at hold at Bell Potter; Price Target: $4.55 from $4.50

• Downgraded to underweight from neutral at Jarden; Price Target: $3.90 from $4.20

• Retained at hold at Jefferies; Price Target: $4.30 from $4.40

• Retained at neutral at JPMorgan; Price Target: $4.40 from $4.50

• Retained at underperform at Macquarie; Price Target: $3.60 from $3.80

• Retained at equal-weight at Morgan Stanley; Price Target: $4.60

• Retained at hold at Morgans; Price Target: $4.15 from $4.35

• Retained at sector perform at RBC Capital Markets; Price Target: $4.30 from $4.35

• Retained at neutral at UBS; Price Target: $4.25

Emerald Resources NL (EMR)

• Retained at underweight at Barrenjoey; Price Target: $3.60

Evolution Mining (EVN)

• Upgraded to neutral from underweight at Barrenjoey; Price Target: $8.10 from $7.60

EVT (EVT)

• Retained at overweight at Jarden; Price Target: $16.34 from $18.70

• Retained at overweight at Morgan Stanley; Price Target: $18.00 from $19.00

• Retained at buy at Ord Minnett; Price Target: $17.09 from $18.94

FireFly Metals (FFM)

• Retained at overweight at Barrenjoey; Price Target: $1.60

Fortescue (FMG)

• Retained at overweight at Barrenjoey; Price Target: $20.00

• Retained at overweight at Morgan Stanley; Price Target: $19.40

• Retained at hold at Morgans; Price Target: $16.50

• Retained at sell at UBS; Price Target: $17.40

GDI Property Group (GDI)

• Retained at buy at Bell Potter; Price Target: $0.85 from $0.80

Greatland Resources (GGP)

• Retained at overweight at Barrenjoey; Price Target: $10.00

Global Lithium Resources (GL1)

• Retained at neutral at Barrenjoey; Price Target: $0.20

Genesis Minerals (GMD)

• Downgraded to underweight from neutral at Barrenjoey; Price Target: $3.95 from $4.20

Goodman Group (GMG)

• Retained at neutral at UBS; Price Target: $37.04 from $36.63

GR Engineering Services (GNG)

• Downgraded to hold from buy at Euroz Hartleys; Price Target: $4.20 from $3.25

Gold Road Resources (GOR)

• Retained at underweight at Barrenjoey; Price Target: $3.25

GQG Partners Inc. (GQG)

• Downgraded to overweight from buy at Jarden; Price Target: $2.50 from $3.60

Genetic Signatures (GSS)

• Retained at speculative buy at Bell Potter; Price Target: $0.55 from $0.65

• Retained at buy at Bell Potter; Price Target: $0.55 from $0.65

Hastings Technology Metals (HAS)

• Retained at neutral at Barrenjoey; Price Target: $0.28

Helloworld Travel (HLO)

• Retained at overweight at Jarden; Price Target: $2.80

Infomedia (IFM)

• Retained at hold at Bell Potter; Price Target: $1.72

• Downgraded to neutral from buy at UBS; Price Target: $1.85 from $1.75

IGO (IGO)

• Retained at overweight at Barrenjoey; Price Target: $5.20

• Downgraded to sell from neutral at Citi; Price Target: $4.50 from $4.10

• Retained at underweight at Morgan Stanley; Price Target: $3.75 from $3.90

Iluka Resources (ILU)

• Retained at overweight at Barrenjoey; Price Target: $6.00 from $5.40

• Retained at overweight at Morgan Stanley; Price Target: $6.40 from $6.55

Imdex (IMD)

• Retained at buy at Bell Potter; Price Target: $3.90 from $3.05

• Downgraded to sell from neutral at Jarden; Price Target: $2.75 from $2.55

• Retained at neutral at Macquarie; Price Target: $3.50 from $2.80

• Downgraded to hold from accumulate at Morgans; Price Target: $3.45 from $3.20

• Retained at neutral at UBS; Price Target: $3.30 from $2.90

Ingenia Communities Group (INA)

• Retained at neutral at UBS; Price Target: $6.10

IPD Group (IPG)

• Retained at buy at Bell Potter; Price Target: $5.00 from $4.30

• Retained at buy at Shaw and Partners; Price Target: $5.00 from $4.80

Johns Lyng Group (JLG)

• Retained at neutral at Citi; Price Target: $4.00

• Retained at hold at Morgans; Price Target: $4.00

Karoon Energy (KAR)

• Downgraded to hold from accumulate at Morgans; Price Target: $1.85 from $2.05

Kogan.com (KGN)

• Retained at neutral at UBS; Price Target: $4.90

Kelsian Group (KLS)

• Retained at sector perform at RBC Capital Markets; Price Target: $3.50

• Retained at buy at UBS; Price Target: $4.80

Lindsay Australia (LAU)

• Retained at buy at Morgans; Price Target: $0.80 from $0.85

• Retained at buy at Ord Minnett; Price Target: $1.01 from $1.08

• Retained at buy at Shaw and Partners; Price Target: $1.00

Liberty Financial Group (LFG)

• Downgraded to neutral from buy at Citi; Price Target: $4.50 from $4.15

Liontown Resources (LTR)

• Retained at underweight at Barrenjoey; Price Target: $0.70

• Retained at sell at Citi; Price Target: $0.45 from $0.40

Lynas Rare Earths (LYC)

• Retained at overweight at Barrenjoey; Price Target: $11.50

• Retained at overweight at Morgan Stanley; Price Target: $12.85

Meteoric Resources NL (MEI)

• Retained at overweight at Barrenjoey; Price Target: $0.25

• Retained at hold at Bell Potter; Price Target: $0.14 from $0.16

• Retained at speculative buy at Ord Minnett; Price Target: $0.20

Michael Hill International (MHJ)

• Retained at outperform at Macquarie; Price Target: $0.75

Mineral Resources (MIN)

• Retained at overweight at Barrenjoey; Price Target: $33.00

• Downgraded to sell from neutral at Citi; Price Target: $34.00 from $31.00

Nanosonics (NAN)

• Retained at sector perform at RBC Capital Markets; Price Target: $4.50 from $5.00

Newmont Corporation (NEM)

• Retained at overweight at Barrenjoey; Price Target: $115.00

Navigator Global Investments (NGI)

• Retained at outperform at Macquarie; Price Target: $2.61 from $2.39

• Retained at buy at Ord Minnett; Price Target: $2.75 from $2.65

NIB Holdings (NHF)

• Downgraded to underperform from neutral at Macquarie; Price Target: $5.60

• Retained at equal-weight at Morgan Stanley; Price Target: $7.85 from $6.75

• Retained at equal-weight at Morgan Stanley; Price Target: $6.75

• Retained at accumulate at Ord Minnett; Price Target: $8.20

• Downgraded to neutral from buy at UBS; Price Target: $8.60 from $7.85

Northern Star Resources (NST)

• Retained at neutral at Barrenjoey; Price Target: $20.00

Nufarm (NUF)

• Retained at sell at Citi; Price Target: $2.60

NRW Holdings (NWH)

• Retained at neutral at Macquarie; Price Target: $3.95 from $3.00

Nuix (NXL)

• Upgraded to buy from hold at Jefferies; Price Target: $2.50 from $2.60

• Upgraded to buy from hold at Moelis Australia; Price Target: $2.66 from $2.50

Origin Energy (ORG)

• Retained at buy at Citi; Price Target: $13.00

Predictive Discovery (PDI)

• Retained at overweight at Barrenjoey; Price Target: $0.45

Paladin Energy (PDN)

• Retained at neutral at Barrenjoey; Price Target: $7.60

Pilbara Minerals (PLS)

• Retained at underweight at Barrenjoey; Price Target: $1.25 from $1.20

• Downgraded to hold from buy at Bell Potter; Price Target: $2.10 from $2.00

• Retained at buy at Canaccord Genuity; Price Target: $2.70

• Retained at neutral at Citi; Price Target: $2.20 from $1.80

• Downgraded to hold from outperform at CLSA; Price Target: $2.10 from $1.95

• Downgraded to neutral from positive at E&P; Price Target: $2.60

• Retained at overweight at Jarden; Price Target: $2.20 from $2.60

• Downgraded to hold from buy at Jefferies; Price Target: $2.10 from $2.00

• Retained at outperform at Macquarie; Price Target: $2.20 from $1.90

• Retained at overweight at Morgan Stanley; Price Target: $2.30 from $2.00

• Downgraded to hold from buy at Morgans; Price Target: $2.30

Polynovo (PNV)

• Retained at buy at Bell Potter; Price Target: $2.00

• Retained at outperform at Macquarie; Price Target: $2.00 from $2.45

• Retained at speculative buy at Morgans; Price Target: $1.69

• Upgraded to overweight from market-weight at Wilsons; Price Target: $1.62 from $1.85

Peoplein (PPE)

• Retained at buy at Ord Minnett; Price Target: $1.03 from $1.06

Praemium (PPS)

• Retained at buy at Bell Potter; Price Target: $1.00

Perenti (PRN)

• Retained at outperform at CLSA; Price Target: $2.55 from $1.65

• Retained at outperform at Macquarie; Price Target: $2.65 from $1.52

Perseus Mining (PRU)

• Retained at neutral at Barrenjoey; Price Target: $3.80

Peter Warren Automotive Holdings (PWR)

• Retained at hold at Morgans; Price Target: $1.95 from $1.75

Qualitas (QAL)

• Retained at accumulate at Morgans; Price Target: $4.00 from $3.80

Qualitas Real Estate Income Fund (QRI)

• Retained at buy at Citi; Price Target: $1.60

Regis Healthcare (REG)

• Retained at outperform at Macquarie; Price Target: $8.90 from $8.10

• Retained at buy at Ord Minnett; Price Target: $9.00 from $8.60

• Downgraded to sector perform from outperform at RBC Capital Markets; Price Target: $8.25 from $8.75

Reece (REH)

• Downgraded to neutral from buy at Bank of America; Price Target: $12.30 from $19.90

• Retained at neutral at E&P; Price Target: $12.88

• Retained at underweight at JPMorgan; Price Target: $10.25 from $13.40

• Downgraded to underperform from neutral at Macquarie; Price Target: $10.10 from $14.90

• Retained at underweight at Morgan Stanley; Price Target: $17.00

• Downgraded to trim from hold at Morgans; Price Target: $11.10 from $14.80

• Retained at buy at Ord Minnett; Price Target: $14.50 from $18.40

• Retained at sell at UBS; Price Target: $11.50 from $13.50

Rio Tinto (RIO)

• Retained at overweight at Barrenjoey; Price Target: $121.00

• Retained at equal-weight at Morgan Stanley; Price Target: $118.00

Ramelius Resources (RMS)

• Retained at overweight at Barrenjoey; Price Target: $3.60

• Retained at buy at Canaccord Genuity; Price Target: $3.85 from $3.95

• Retained at outperform at Macquarie; Price Target: $3.30 from $3.10

• Retained at buy at Ord Minnett; Price Target: $3.20 from $3.15

Regal Partners (RPL)

• Retained at buy at Morgans; Price Target: $3.70 from $3.55

Scentre Group (SCG)

• Retained at buy at Citi; Price Target: $3.90

• Retained at neutral at UBS; Price Target: $3.82

SEEK (SEK)

• Retained at overweight at Morgan Stanley; Price Target: $32.50 from $30.10

Sandfire Resources (SFR)

• Retained at overweight at Barrenjoey; Price Target: $12.00

• Retained at underweight at Morgan Stanley; Price Target: $8.35

Stanmore Resources (SMR)

• Retained at neutral at Barrenjoey; Price Target: $2.25 from $2.30

• Retained at buy at Citi; Price Target: $3.00 from $3.10

• Retained at buy at Ord Minnett; Price Target: $2.55 from $2.60

Shaver Shop Group (SSG)

• Retained at hold at Ord Minnett; Price Target: $1.50 from $1.30

Santos (STO)

• Retained at outperform at Macquarie; Price Target: $8.55 from $8.60

• Retained at equal-weight at Morgan Stanley; Price Target: $8.88

• Retained at accumulate at Morgans; Price Target: $8.65

• Retained at accumulate at Ord Minnett; Price Target: $8.89

• Retained at buy at UBS; Price Target: $8.50 from $7.90

Tasmea (TEA)

• Retained at buy at Morgans; Price Target: $5.00 from $4.35

• Downgraded to hold from buy at Shaw and Partners; Price Target: $4.40 from $4.10

Tourism Holdings Rentals (THL)

• Upgraded to buy from hold at Morgans; Price Target: $2.65 from $2.33

Tyro Payments (TYR)

• Retained at buy at UBS; Price Target: $1.35

Vault Minerals (VAU)

• Retained at overweight at Barrenjoey; Price Target: $0.68

Viva Energy Group (VEA)

• Retained at buy at UBS; Price Target: $2.80

Vulcan Steel (VSL)

• Retained at neutral at UBS; Price Target: $6.50

West African Resources (WAF)

• Retained at overweight at Barrenjoey; Price Target: $3.60

WEB Travel Group (WEB)

• Retained at buy at Citi; Price Target: $6.60

• Retained at outperform at RBC Capital Markets; Price Target: $7.50 from $7.10

Whitehaven Coal (WHC)

• Retained at neutral at Barrenjoey; Price Target: $6.50 from $6.60

Zip Co (ZIP)

• Retained at buy at Citi; Price Target: $4.50 from $3.10

Scans