J.P. Morgan Australia FTM 6 Aug 26 Light & Wonder Inc (AU); Endeavour Group; Margin Drivers Monthly (Jul-26); Evolution Mining Ltd.; Ramelius Resources and More

Research evidence excerpt

Asia Pacific Equity Research

Australia First to Market

06 August 2026

Top Stories

Light & Wonder Inc (AU) (Don Carducci) (LNW AU, OW)

**Sigh** play

Although headline expectations were met, the following should be considered: 1) When normalised for the full- quarter Grover

contribution, underlying revenue was down -0.6% and the acceleration in Gaming Ops FPD was driven largely by a favorable

unit mix shift. 2) With Grover now fully annualised in the base, execution risk will build into 2H given the strong 4Q skew and

outright sales required to achieve guidance. 3) FCF outcomes and lower buybacks through the balance of FY26 will drive degearing towards 3.0x. At these levels, we think current multiples imply that risk/reward is skewed to the upside. Retain

Overweight, $138 PT.

Endeavour Group (Bryan Raymond) (EDV AU, UW)

FY26 Trading Update – Margins under pressure

Endeavour’s FY26 trading update was broadly in-line with JPMe and consensus, with little operating commentary or outlook

comment. The focus was on the $327m of pre-tax significant items in 2H26 ($53m of which are cash vs. $274m non-cash). This

is unlikely to be the last of the cash costs, with two more years of cost-out that will require further one-off costs to execute on in

FY27e/FY28e. We view the non-cash impairments as new CEO Jayne Hrdlicka clearing the decks ahead of the first full-year

result, likely employing conservative testing of intangibles. Our Underweight rating and $3.00 price target are unchanged

following small EPS downgrades (-1.2% in FY26, -0.4% in FY27e and -1.9% in FY28e). We expect EPS to decline by a further 3.4% YoY in FY27e. Endeavour is trading on 15.3x FY27 PER at our $3.00 PT and on our earnings forecasts vs. 16.9x FY27

PER at the current share price and on consensus earnings forecasts.

Margin Drivers Monthly (Jul-26) (Andrew Triggs)

Mortgage competition pick-up broadens; funding cost drivers mostly negative

In July, funding cost drivers were mixed and mortgage spreads showed signs of pressure. With the RBA cash rate stable, the

majors and second-tier banks made no pricing moves in online saver or behavioural savings products. Major bank term deposit

…