updates

** Shares of Australia's Aurizon Holdings AZJ.AX extend gains, rising 2.2% to A$3.925, their highest since late April, 2024

** Rail freight operator on Monday logged a 16% jump in HY NPAT and extended its buyback by A$100 million ($70.74 million); shares jumped 7%

** Citi and Morningstar say co's H1 results were solid, with a recovery in coal segment

** However, brokerage flags a potential reversal in second-half coal profitability with lower expected yields and flat FY26 unit costs

** Morningstar still sees headwinds in coal haulage, given weak operating conditions and "significant recontracting to come"

** Still, given results, Citi makes modest EBIT revisions for FY26-28 and hikes dividend payout to 90%; Morningstar raises FY26 earnings forecasts but leaves longer-term outlook unchanged

** Citi "neutral" on shares but hikes price target to A$4.00/share

** YTD, shares up 7.5%

($1 = 1.4136 Australian dollars)