0359 GMT - Catapult's stock merits further re-rating despite its strong price gains over recent months, according to its new bulls at Morgan Stanley. MS analysts initiate coverage of the sports-tech developer with an overweight recommendation, writing in a note that markets typically underestimate share-price performance for four quarters after companies pass the inflection point of positive Ebitda and free cashflow. Catapult recently achieved this. They think that Catapult can sustain its revenue growth trajectory and improved profitability, driving further share-price outperformance. MS puts a A$4.45 target price on the stock, which is up 2.0% at A$3.54. ([email protected])

0335 GMT - Integral Diagnostics' merger with Capitol Health could offer investors even more upside to that already included in Macquarie analysts' bullish view of the stock. The analysts tell clients in a note that they see significant EPS accretion from the imaging providers' merger, which last week was approved by an Australian court. They see revenue growth supported by indexation, mix shift and volume growth, with earnings margins expanding due to cost synergies. Yet the companies haven't estimated any revenue synergies, which the Macquarie analysts reckon could emerge, including from the improved use of specialists across clinics. Macquarie raises its target price 21% to A$3.50 and maintains an outperform rating. Shares are down 1.3% at A$2.94. ([email protected])

0315 GMT - Morgan Stanley analysts see signs that margins are stabilizing at Peter Warren Automotive, but it's not enough to make them buyers of the stock. They maintain an equal-weight rating, noting their low conviction in earnings forecasts and the lack of visibility, which keeps them on the sidelines for now. Large swings in recent performance suggest the market is uncertain about the Australian vehicle dealer's underlying earnings power. The analysts have trimmed earnings forecasts due to weaker-than-expected guidance, reducing the target price by 17% to A$1.50. Shares are up 1.3% at A$1.55. ([email protected])

0307 GMT - Sigma Healthcare's elevated profile from its impending merger with Chemist Warehouse and its likely inclusion as one of Australia's 100 largest listed companies earn the pharmaceutical supplier a new bull at Morgans. Analyst Scott Power raises his recommendation on the stock to add from hold, telling investors that Sigma will attract significant passive buying from funds if, as he expects, it is included in Australia's S&P/ASX 100 and other global indexes. He adds a 30% liquidity premium to his valuation as a result. Target price rises 35% to A$2.98. Shares are up 0.4% at A$2.68. ([email protected])

0216 GMT - Pro Medicus is initiated with an overweight rating at Morgan Stanley, where analysts compare the imaging-tech provider favorably with logistics-software developer WiseTech. MS analysts write in a note that Pro Medicus's solutions, like those at WiseTech, are very scalable. Both companies' penetration of global markets is relatively low and customer churn rates are small, they observe. The MS analysts forecast Pro Medicus's customer volumes to grow by about 7% annually over the next five years, compared with overall industry growth of 2.3%. MS places a A$300 target price on the stock, which is up 1.6% at A$254.66. ([email protected])

2342 GMT - Ramelius Resources' Rebecca-Roe gold-mining project is shaping up to be less lucrative than expected, Macquarie analysts say. Prefeasibility study results suggest a lower NPV--by about A$121 million--than Macquarie previously estimated. Still, the project remains key to maintaining Ramelius's current production longer term, "by acting as a replacement hub for the soon-to-cease Edna May operations," they say. The study points to a higher production rate but also higher operating costs than Macquarie anticipated. First production is also roughly nine months later than expected. Macquarie keeps an outperform rating but trims target on the stock by 4% to A$2.60. Ramelius is up 1.1% at A$2.245, clawing back a little of Monday's 3.5% fall. ([email protected]; @RhiannonHoyle)

2336 GMT - Boss Energy's stock looks cheap even amid concerns about higher operating costs for the company's Honeymoon uranium mine, Macquarie analysts say in a note. Boss shares, down roughly 40% year to date, already reflect higher than previously envisaged costs at Honeymoon, say the analysts. Macquarie now factors in operating costs around US$27/pound versus a US$19/pound estimate in 2021. A cost update from the miner is expected in January. To be sure, "wellfield performance, tenors and sustaining/deferred capex will all need monitoring," they say. "Improving uranium pricing structures could be the wildcard." Macquarie has an outperform call on Boss. It trims its target by 2% to A$4.50. The stock is down 0.4% at A$2.39.([email protected]; @RhiannonHoyle)

2250 GMT - WiseTech Global's bull at Citi doesn't think DSV will quit as a customer despite the Danish freight operator's unhappiness over higher prices from its tech providers. Analyst Siraj Ahmed acknowledges that DSV called out cost pressures from IT vendors including WiseTech-owned logistics platform CargoWise, but he reckons that the benefits still outweigh the negatives for DSV. He writes in a note that rival DB Schenker's comparable costs are 44% higher than DSV's. Using CargoWise across different parts of DSV's business is also expected to be a key driver of improved productivity and cost synergy, Ahmed adds. Citi has a buy rating and A$124.50 target price on WiseTech shares, which are at A$119.25 ahead of the open. ([email protected])

2139 GMT - Imdex's share-price weakness suggests that investors are becoming more skeptical about the prospects of a late-year exploration rebound, according to its bear at Citi. The stock lost almost 10% last week, which analyst William Park thinks reflects expectations of low demand for the mining-tech provider's services. Park points out in a note that average monthly exploration-related raisings from juniors so far in 204 appears to be largely in-line with the monthly average in 2023. He believes that a meaningful rebound in exploration is still priced-in to the stock price and maintains a sell rating. Citi has a A$1.95 target price on the stock, which is at A$2.33 ahead of the open. ([email protected])

1221 GMT - Regulatory proceedings against Entain's Australian subsidiary over alleged non-compliance with the country's money laundering and anti-terrorism financing laws are potentially damaging for the group, AJ Bell's Russ Mould writes in a note. "An Australian crackdown has seen other operators pay out material sums in fines and Entain faces a nervous wait to find what, if any, damage will be done to the balance sheet and its reputation by any eventual judgment," Mould says. This could weigh on recently appointed Chief Executive Gavin Isaacs' attempts to revive the business, he adds. Shares are down 6.6% at 761.40 pence. ([email protected])

1021 GMT - Entain's potential penalty from Australian regulator brings uncertainty, Davy Research analyst Paul Ruddy and Tara Tabesh write in a note. The sports-betting and gambling group released a statement mentioning that the regulator started proceedings against its subsidiary in Australia for alleged noncompliance with the country's anti-money laundering laws. "This is a difficult situation for Entain, particularly given it follows the 615 million pounds deferred prosecution agreement for bribery offences in Turkey," they say. Shares are down 6.2% at 764.80 pence. ([email protected])

(END) Dow Jones Newswires