0242 GMT - Australian supermarket supplier Metcash has everything it needs to start demonstrating its strong operating leverage other than a near-term catalyst, Jarden analysts write in a note. They remain bullish on the stock on valuation and tell clients that operating leverage will be greater than the market appreciates, once the housing cycle turns. For now, Metcash's hardware business is still weighing on performance. Jarden's analysts think the construction market will bottom in the first half of 2025, raising the possibility of a rise in hardware demand in 2026. Jarden cuts its target price 4.7% to A$4.10 and keeps a buy rating on the stock. Shares are up 6.1% at A$3.385. ([email protected])

0133 GMT - Worries over the durability of Steadfast's domestic growth are overdone, according to the Australian insurance broker and underwriter's new bulls at Morgan Stanley. Analysts Andrei Stadnik and Richard E. Wiles raise their recommendation to overweight from equal-weight, telling clients in a note that the stock offers compelling value. They anticipate a 17% on-year underlying EPS growth in fiscal 2025, ahead of the ASX-listed company's 12%-16% guidance. The stock is cheaper than many insurers and financial companies with more limited growth profiles, they say. MS lifts its target price by 5.1% to A$6.98. Shares are up 4.0% at A$6.105. ([email protected])

0118 GMT - Collins Foods' interim dividend disappointed Wilsons analysts, who flag cashflow as a notable highlight of the fast-food franchiser's first-half result. They tell clients in a note that the Australian company's A$75 million operating cashflow was 14% stronger than they had anticipated. Even so, they had expected Collins to hold its dividend at 12.5 Australian cents. Instead, it cut its payout to 11 Australian cents a share. They still like Collins' for the strength of its cornerstone KFC brand, cash generation, and potential for significant store growth. The stock is fundamentally undervalued, they add. Shares are down 3.4% at A$8.33. Wilsons is reviewing its forecasts. ([email protected])

0103 GMT - NextDC's bulls at UBS think that risks around delivery of its S5 data center have reduced with the latest land rezoning report by Australia's New South Wales state government. UBS analysts' interpretation of the report is that NextDC's planned S5 Sydney center will be assessed under old zoning rules, rather than under new rules that prohibit further data-center development within the relevant commercial zone. They warn in a note to clients that the data center has not been approved yet, but that the absence of a clear block is positive for its chances of approval. UBS keeps a buy rating on the stock and lifts its target price 3.1% to A$20.00. Shares are up 1.1% at A$16.73. ([email protected])

0057 GMT - Collins Foods' sales growth has picked up but is still lagging expectations for the fast-food franchiser's fiscal 2H, RBC analyst Michael Toner notes. The 3.9% sales growth at its KFC Australia restaurants is an improvement on the 2.7% seen across its fiscal 1H, but Toner points out that the average analyst forecast for the 2H is 4.1%.He writes in a note to clients that KFC Australia is holding up well in a challenging trading environment. Toner adds that Europe is the main drag on overall performance, with 1H revenue falling 11% short of his forecast. RBC has a sector-perform rating and A$9.00 target price on Collins shares, which are down 3.5% at A$8.315. ([email protected])

2235 GMT -- Gold Road Resources, with a roughly 17% stake in De Grey Mining, could be the kingmaker in any scramble to buy the gold company, says Jefferies analyst Mitch Ryan. Northern Star on Monday agreed to buy De Grey for roughly A$5 billion. "If the deal process were to become contested, a scenario we see as having [greater than] 50% probability, then [Gold Road's] stake delivers a high degree of strategic flexibility to any counter-bidder," Ryan says. If Northern Star can secure De Grey, it would allow Australia's top listed gold miner to reshape its portfolio, including possibly selling some superfluous assets. "We see Carosue Dam as the most likely divestment given its production and cost base," Ryan says. ([email protected])

2211 GMT -- Soaring coffee prices could force caffeine addicts to switch from cafes to home brew, which might be good news for small-appliance makers. Citi analyst Sam Teeger tells clients in a note that the highest coffee prices in decades could create a new cohort of potential customers for the likes of Australia's Breville, which makes home appliances including coffee machines. However, he warns that Breville's premium market position means the impact of any such trend might be delayed relative to other brands. Breville is typically the third or fourth coffee-machine brand that a customer buys, he says. Citi has a neutral rating and A$36.51 target price on the stock, which is at A$33.28 ahead of the open. ([email protected])

0543 GMT - There's a real risk another suitor for De Grey could appear, Euroz Hartleys says after Northern Star agreed to buy the gold company for around A$5 billion. The broker wonders if Canada's Agnico Eagle could be interested in De Grey, which owns the big Hemi gold discovery in Australia. Euroz Hartleys shifts to a speculative buy from a buy recommendation on De Grey, with a A$2.03 target. It says it isn't surprised by Northern Star's takeover bid, and reckons the deal makes sense for Northern Star given it also has operations in Western Australia and experience with both refractory orebodies and large-scale developments. De Grey ends 30% higher at A$1.97. ([email protected]; @RhiannonHoyle)

(END) Dow Jones Newswires