0215 GMT - Australian advertising markets are primed for growth in 2025, according to oOh!media's new bull at Macquarie. An analyst note from the investment bank points to the likely boost to consumer and business confidence from interest-rate cuts that are widely expected to occur during the year. This should benefit outdoor advertiser oOh!media, where the analyst sees operating leverage improving due to cost cuts. Pricing within the outdoor advertising industry is also becoming more rational and pressures on margins should ease, they add. Macquarie cuts its target price by 7.1% to A$1.45 but raises its recommendation to outperform from neutral. Shares are up 5.5% at A$1.245. ([email protected])

0206 GMT - Baby Bunting's second-quarter performance leaves Citi analyst Sam Teeger wondering whether the baby-goods retailer is conservative with its annual sales guidance. Teeger suggests that the Australian company might be cautious given factors including the Australian dollar's weakness and a soft consumer backdrop. He nonetheless points out in a note to clients that company guidance assumes like-for-like sales growth over the full fiscal year of no more than 3%, compared with on-year growth of 4.5% in the second quarter. Citi has a neutral rating and a A$1.98 target price on the stock, which is up 12% at A$1.765. ([email protected])

0155 GMT - Premier Investments' bull at Bell Potter reckons that the Australian retail conglomerate's Peter Alexander unit has maintained its strong sales momentum despite challenges at a group level. Analyst Chami Ratnapala thinks that Premier's softer-than-expected first-half guidance reflects a 10%-12% decline in international sales, which she attributes primarily to the Smiggle stationery business. She lowers her annual profit forecasts by as much as 10% for each of the next three fiscal years, but tells clients in a note that she still rates the stock a buy. Bell Potter cuts its target price by 11% to A$34.00. Shares are down 1.3% at A$27.05. ([email protected])

2358 GMT - Northern Star's coming 2Q production report could disappoint some in the market, reckons RBC Capital Markets. RBC thinks Northern Star's gold production will rise by 14% compared with 1Q, falling short of consensus hopes slightly. It would also mean Northern Star is tracking below annual guidance of 1.65 million-1.80 million troy ounces. "20,000 oz more sold than produced in 1Q could unwind (in) 2Q and impact all-in sustaining costs," RBC says. It concludes that KCGM, one of Australia's largest open pit gold mines, is key to a big finish to FY 2025 and a better FY 2026. RBC rates Northern Star at sector perform. ([email protected]; @dwinningWSJ)

2346 GMT - There are early signs of a turnaround at retailer Baby Bunting, says Ord Minnett. Baby Bunting today reported a 1H gross profit margin of 39.8%, up 260 basis points on a year earlier. That was better than the 39.0% anticipated by Ord Minnett. Sales trends are improving, with Baby Bunting reporting 2Q same-store sales growth of 4.5%. "Pleasingly, the company has stated the positive momentum has continued into the first few weeks of 2H," says analyst James Casey. Ord Minnett retains an accumulate call on Baby Bunting, which is up 10% at A$1.745 today. ([email protected]; @dwinningWSJ)

2340 GMT - Westgold Resources may have retained its annual guidance following a soft 2Q, but Macquarie expects the miner to miss that target slightly. Westgold continues to expect production of 400,000-420,000 troy ounces of gold at an all-in sustaining cost of A$2,000-A$2,300/oz in FY 2025. "We note that year-to-date Westgold has produced 39% versus the mid-point of FY 2025 production guidance and 40% of the guidance bottom-end," Macquarie says. It now tips production of 395,000 oz at an all-in sustaining cost of A$2,334/oz. Still, its new assumptions require a 49% half-on-half lift in production, driven by the ramp up of the Bluebird underground mine, Beta Hunt and the addition of some ounces from the new Great Fingall mine in 4Q. ([email protected]; @dwinningWSJ)

2335 GMT - Viva Energy's temporary shutdown of its Geelong refinery following a power outage is likely to dent its earnings, assesses Macquarie. "We cut 1H refining intake by 8% to 18.6 million barrels, noting the 3Q major turnaround will drive sizeable margin reductions during 2H as well," Macquarie says. It currently assumes a two-week shutdown plus an additional A$10 million of operating expenses in 1Q, partly reflecting the costs of restarting the plant. Macquarie lowers its 2025 EPS forecast by 7% due to reduced expectations for refining earnings. ([email protected]; @dwinningWSJ)

2233 GMT - Guzman Y Gomez shakes off its bears at UBS on the prospect of the Australian fast-food chain beating market expectations for annual sales growth and earnings margins. Analysts Shaun Cousins and James Meares raise their recommendation on the stock to neutral from sell, citing the potential impacts of menu changes, longer opening hours and increased delivery orders. They reckon that improved sales growth relative to a more modest year-earlier period through the remainder of fiscal 2025 can help deliver increased operating leverage. They wonder whether Guzman y Gomez would expand margins or redeploy capital back into the business. Target price rises 8.1% to A$40.00. Shares are at A$38.33 ahead of the open. ([email protected])

2230 GMT - Australian buy-now-pay-later operator Zip needs to grow customer numbers this year to justify a further re-rating of the stock, according to its bull at Jefferies. Analyst Roger Samuel tells investors that he is confident in Zip's ability to add customers in the U.S., where the ASX-listed company has partnerships with Stripe and Google. Zip's CEO has also disclosed talks with Apple. This is one of three potential catalysts that Samuel sees for the stock, including Zip becoming a takeover target or announcing new merchant partnerships. Jefferies keeps a buy rating and A$3.80 target price on the stock, which is at A$2.90 ahead of the open. ([email protected])

2154 GMT - Jefferies raises its price target on imaging-tech provider Pro Medicus by 79% to A$250.00/share, but concludes that only a hold call is warranted on its stock. That's because Pro Medicus ended Tuesday at A$254.00, more than double year-ago levels. "Valuations are stretched to a point beyond our justification, yet we see upside risk to consensus estimates," analyst Wei Sim says. Jefferies raises its earnings forecasts for FY 2026-2027 by 37-71%, anticipating more health care companies will move away from legacy tech providers over the next 3-5 years. Its revised FY 2026-2027 earnings projections are 13%-32% ahead of consensus hopes. Still, Jefferies says Pro Medicus "needs to penetrate 98% of U.S. market to justify its current valuation." ([email protected]; @dwinningWSJ)

2130 GMT - Investors' apparent pessimism over City Chic Collective's ability to hit its cost target leaves Citi analyst James Wang seeing scope for the Australian clothing retailer to beat full-year earnings expectations. Wang tells clients that the average analyst forecast of A$6.7 million in annual Ebitda implies an expectation that the women's apparel company fails to achieve its previously flagged cost savings in full. Wang is more confident, pointing to how clear City Chic has been about how it will achieve the savings. Citi cuts its target price by 20% to A$0.20 but keeps a buy rating on the stock. Shares are at A$0.11 ahead of the open. ([email protected])

(END) Dow Jones Newswires