0238 GMT - Current market expectations and trading multiples have set a very high bar for Australia's banks in 2025, Morgan Stanley analysts say in a note. "While multiples have remained elevated for many months, we think a de-rating is likely in the year ahead," they say. As share prices stand, meaningful upgrades to consensus EPS and dividend forecasts appear to already be priced in. "There is very little margin for error," say the analysts. They prefer nonbank financial stocks in Australia this year. Among major Australian banks, MS's order of preference is overweight-rated NAB, followed by equal-weight-rated ANZ, and then underweight-rated Westpac and CBA. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0115 GMT - Casino operator Star Entertainment will be lucky to make it to its interim results on Feb. 28 without a lifeline if it continues its recent rate of cash burn, Morningstar analyst Angus Hewitt says in a note. "Operating conditions are weak, with mandatory carded play and poor consumer sentiment weighing on the top line," he says. Compliance and legal costs have also increased, he says. Morningstar lowers its valuation for Star by 60% to A$0.20 a share. "We now incorporate a 50% probability that Star falls into administration, and equityholders are wiped out," Hewitt says. Star is down another 15% at A$0.11, after a 33% dive Thursday. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2233 GMT - Collins Foods may want to consider pushing to be awarded the KFC master franchise rights for Germany by Yum! Brands, according to Citi's Sam Teeger. He reckons that's potentially a better way of Collins increasing its scale in Europe, as desired, versus an acquisition in a new market. Teeger's remarks follow a Yum! Brands filing showing that, in December 2024, it re-acquired the KFC rights for Germany from IS Gida. "We recently published our thoughts that if Collins was going to expand in Europe, then the U.K. or Italy would be potential markets," Teeger says. "But we see Germany as relatively lower risk given Collins already has experience in this market and its adjacency to the Netherlands could present cost-sharing and sourcing benefits." Citi has a buy rating and A$9.38 target on Collins, which last traded at A$7.22. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2148 GMT - Australian stocks are expected to open higher, with ASX futures up 0.3% before the bell. Australia's benchmark index lacks typical cues from Wall Street, where U.S. stock markets were closed for the day to mark former President Jimmy Carter's memorial. The S&P/ASX 200 edged 0.2% lower Thursday, snapping the five-day winning streak it recorded to start the new year. Firmer commodity prices may be a tailwind for some mining and energy stocks, with iron ore, gold, copper and crude oil all gaining. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires