0234 GMT - Dexus's office portfolio remains relatively high-quality despite the 3.2% fall in its valuation over the December half, Citi analysts say. They tell clients in a note that the revaluation of the Australian real-estate group's overall portfolio was broadly in line with expectations, with its office assets outperforming the broader market. However, they observe that office fundamentals and sentiment remain under pressure and probably need a catalyst to change the outlook and attract a broader range of investors. Citi has a neutral rating and A$7.30 target price on the stock, which is up 0.8% at A$6.745. ([email protected])

0134 GMT - The valuation impact on Karoon Energy of its latest production downgrades is negligible but consistent with the continuing theme of production disruptions in Brazil through 2024, Jarden analysts say. They write in a note that the reasons for a series of downgrades vary but ultimately relate to operational performance issues relating to offshore vessels or down-hole challenges. The cumulative production downgrade means that Jarden takes a more conservative view on future up-time from Brazil-based offshore vessels, resulting in it cutting the target price 4.8% to A$2.00. Jarden retains a buy rating. Shares are down 1.2% at A$1.245. ([email protected])

0131 GMT - Morgans analyst Nathan Lead lowers his earnings expectations for APA's Basslink on the Australian Energy Regulator's draft decision not to make it a regulated asset. He realigns his Ebitda expectations for the asset with existing earnings, but warns in a note to clients of potential downside risk if and when the proposed Maranus Link is built in 2029 or 2030. Basslink is the third material investment by APA that is not yielding the expected returns, he adds. Morgans keeps a hold rating on the stock and lowers its target price 6.9% to A$7.13. Shares are down 1.6% at A$7.065. ([email protected])

0048 GMT - APA's medium-term earnings could be impacted if the Australian Energy Regulator sticks by its draft decision not to make the Basslink line a regulated asset, Jarden analysts say. They tell clients in a note that pipeline operator APA will probably increase charges for the use of Basslink if the AER formalizes its decision. Price rises would could increase near-term earnings, but decrease medium-term earnings when the proposed Marinus Link transmission line is built. That said, they point out that Basslink is not a major earnings contributor and Jarden keeps an overweight rating on the stock. It cuts the target price 1.8% to A$8.30. Shares are down 1.3% at A$7.085.([email protected])

2351 GMT - BlueScope Steel faces persistent market challenges in the second half of fiscal 2025, says Citi analyst Paul McTaggart. He trims Citi's target on the stock to A$21.00 from A$21.50 and retains a neutral rating. Steel prices in both Asia and the U.S. have softened in recent weeks, while the price of raw ingredient iron ore has moved higher. "FY25 is shaping up as a continuation of tough market conditions in steel," McTaggart says. Citi now expects BlueScope to report FY25 Ebit around A$597 million, 9.9% lower than previously forecast, says McTaggart. Market consensus is around A$700 million. BlueScope reported FY24 Ebit of A$1.34 billion. Its stock is down 0.6% at A$20.04. ([email protected]; @RhiannonHoyle)

2333 GMT -- The impact of weakening vehicle demand on Peter Warren Automotive shocks Jefferies analysts, who cut their recommendation on the stock to hold from buy. They had expected the vehicle dealer's first-half earnings to suffer from softer Australian consumer demand but the size of the impact is a surprise. They write in a note that they are cutting their EPS forecasts for the next three fiscal years by 31%, 36% and 20%, respectively. There is little clarity on when any turnaround might eventuate, they warn. Jefferies cuts its target price 26% to A$1.45. Shares are flat at A$1.55. ([email protected])

2010 GMT -- Australia's midyear economic and fiscal update is expected to highlight the growing pressure on the federal government's finances, with deficits forecast for the future amid a backdrop of falling commodity prices and surging government expenditures. With an election due before mid-May, Treasurer Jim Chalmers may use the MYEFO as a platform to announce added spending measures. If those promises are deemed excessive, hopes of a February rate cut could fade. Some economists are expecting the budget to swing aggressively into deficits, with the government citing what it calls "unavoidable spending." Falling commodity prices and budget revenues will once again highlight Australia's strong reliance on China for its economic strength. ([email protected])

(END) Dow Jones Newswires