Brokerages upbeat on Australia KFC operator Collins Foods post half-year results

Morningstar upgrades earnings forecast for Collins Foods CKF.AX on improving productivity in Australia KFC stores and margins tracking ahead of annual estimates

Restaurant operator on Monday logged 29.5% rise in HY26 underlying NPAT to A$27.2 million ($17.83 million), lifts FY26 NPAT growth forecast to "mid-to-high-teens" from earlier "low-to-mid-teens"

Investment research firm lifts fair value estimate by 4% to A$14.5, hikes FY underlying NPAT estimate by 3%

Says consumer sentiment is recovering and should allow Collins to reclaim some lost gross margin

Citi sees more upside for Collins as co scales up in Germany via new development and acquisitions

Adds it does not view co's 19.4 multiple price-to-earnings ratio as "expensive" on short-term earnings momentum and improvement in medium-term growth trajectory in recent times

Stock up 54.3% so far this year, as of last close

($1 = 1.5253 Australian dollars)