0056 GMT - UBS reckons its time to sell Lovisa Holdings, citing modest net new store growth and market expectations that appear too aggressive. Like-for-like sales growth has been subdued and competition is an increasing risk, UBS's analysts say. "Given the downside risk to consensus earnings estimates and reduced valuation support, the risk-reward is no longer compelling," they say. UBS downgrades the stock to sell from neutral and pares its target to A$27.00 from A$29.00. Lovisa is down 7.2% at A$27.74. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0043 GMT - It's too early to start broadly buying Australian mining stocks again given persistent macro challenges, according to Citi analyst Paul McTaggart. "We continue to see the mining sector facing strong headwinds as global growth remains subdued and near-term commodity prices linger at lower levels," he says in a note. Key mining stocks like BHP and Rio Tinto look like better value after recent losses, "however improved valuation metrics are not yet a green light for investors to dive back in, in our view," he says. Australia's S&P/ASX 300 metals and mining index is down 0.6% at 5251.7. The index shed nearly 19% in 2024. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2347 GMT - AMP's underlying business is beginning to show signs of stabilizing amid a so-called simplification spree by management, Macquarie analysts say. However, the analysts say they "need a longer track record of execution before becoming more bullish on the stock." Macquarie's target on AMP goes to A$1.70 from A$1.34, but it keeps a neutral rating on the stock. AMP is down 1.5% at A$1.62. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2220 GMT - Australian stocks are expected to start the day in the red, with ASX futures down by 0.4% ahead of the open. That suggests the benchmark index may retrace some of its recent gains, having enjoyed a solid start to 2025 with five consecutive days in the black. On Wall Street earlier, stocks swung between gains and losses. The S&P 500 finished the day up 0.2% and the Dow Jones Industrial Average added 0.3%, while the tech-heavy Nasdaq Composite fell less than 0.1%. Before the bell, mining services contractor Macmahon said it got a A$463 million contract for an Indonesian gold project. Miner Westgold Resources reported a rise in quarterly gold output both on quarter and versus a year ago. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires