** 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)
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))
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