0310 GMT - Rio Tinto, recently criticized by investors for offering an "unnecessarily full price" to Arcadium shareholders, has now delivered a disappointing 3Q production report, Citi analyst Paul McTaggart writes. He points to the Escondida mine and titanium dioxide business as positives in the 3Q report, but notes warnings of persistent inflation and operational disruptions at several sites. Citi maintains a neutral rating and a A$123 target price on Rio Tinto, which is down 0.9% at A$121.01. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0047 GMT - Rio Tinto's 3Q Pilbara iron-ore shipments were better than anticipated, while copper and aluminum marginally missed expectations, RBC Capital Markets says in a note. That aside, the broker reckons mine access issues at the company's Kennecott copper operation--expected to impact 2025 and 2026 output--is likely to weigh on its stock. Investors will also likely be concerned about the medium to longer-term outlook for prices for its Pilbara iron ore, with the company reviewing its product strategy after higher-than-anticipated volumes of lower-grade SP10 material, RBC says. Rio Tinto is down 1.6% at A$120.09/share in Sydney, outpacing a 0.7% fall in Australian materials stocks. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0041 GMT - Australian water-management specialist Rubicon Water gets a new bull at Wilsons, where analysts anticipate significant medium-term sales growth. Initiating coverage of the stock with an overweight recommendation, the analysts tell clients in a note that the company, which focuses on improving agricultural customers' water efficiency, has negligible direct competition for its market-leading product solutions. They says the U.S. is a growing market for Rubicon, and see upside risk to their current forecasts if customer engagement and contract wins accelerate by more than they expect. Wilsons puts a A$0.41 target price on the stock, which is flat at A$0.235. (stuart.condie@wsj.com)

0035 GMT - TPG Telecom's plan to sell fixed-fiber assets to Vocus represents a partial reversal of the rationale for its 2020 merger with Vodafone Australia, Morgans analyst Nick Harris says. He reckons that the A$5.25 billion sale makes financial sense given the extent to which TPG can de-gear its balance sheet, but points out in a note that it reduces TPG's control over the fiber network that it will still be using. A sizable lease liability could be required to complete the deal, he adds. A special dividend could be the route through which TPG opts to distribute any remaining cash, Harris says. Morgans cuts its target price 5.8% to A$4.90 and keeps a hold rating on the stock, which is down 0.5% at A$4.855. (stuart.condie@wsj.com)

0026 GMT - Small-appliance maker Breville needs to clarify the timing of its plans to enter new direct markets if Citi analyst Sam Teeger is to turn more positive on the stock. He tells clients that, while Breville's track record warrants the stock's premium valuation, competition in coffee appliances appears to be increasing and that material share-price upside from this point looks unlikely. That said, Teeger sees plenty of room for Breville to grow, including in Asia and China. Citi has a neutral rating and A$36.51 target price on the stock, which is down 2.0% at A$35.39. (stuart.condie@wsj.com)

0007 GMT - The U.S. economy appears to be settling into a sustainable pace of growth, miner Rio Tinto says of one of its biggest markets in a quarterly report. While pay and job growth seem to be slowing, strong household finances are supporting consumer spending, it says. It reckons depressed manufacturing and housing activity could benefit from the start of interest rate cuts. For China, its top market, the miner highlights Beijing's pledge for more support to sustain growth amid an uneven economic recovery. "As the economy transitions from the property sector to new growth areas, future commodity demand will turn more reliant on advanced manufacturing, including electric vehicles and power infrastructure," it says. The outlook in the eurozone is still uncertain, thanks to uneven growth across countries and subdued consumption, Rio Tinto says. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0003 GMT - Bank of Queensland's plan to allow its mortgage book to decline in fiscal 2025 puts pressure on its business banking unit, Citi analyst Brendan Sproules says in a note. He tells clients that the business unit needs to drive revenue growth if the Australian regional lender is to hit its FY 2026 targets. Sproules says that BOQ's FY 2024 result was slightly better than he had anticipated, with cash earnings beating his forecast by 3% on a very low bad-debt charge and a net-interest margin of 1.57%. Citi has a sell rating and A$5.30 target price on the stock, which is up 5.3% at A%$6.60. (stuart.condie@wsj.com)

2327 GMT - Woodside Energy's 3Q revenue came in 6% ahead of Citi's estimates, but the bank worries investors might become overly optimistic about the 2H dividend. Woodside reported revenue of $3.68 billion, above Citi's $3.5 billion forecast. "We had forecast the strong LNG production but realized pricing was still below our estimates despite the high percentage sold on spot," analyst James Byrne says. Citi also notes that capex guidance has also improved to $4.2 billion-$5.2 billion. "From an earnings and dividend perspective, we caution that brokers may still underestimate Sangomar unit depreciation and amortization, which could see consensus 2H dividend upgraded today more than it should," says Citi, referring to Woodside's newest oil project, in Senegal. It has a "sell" call on Woodside's stock. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 16, 2024 00:01 ET (04:01 GMT)