The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1949 ET - Australian gold miners aren't as cheap as they once were, but many still appeal due to strong cash generation and the likelihood of an increased focus on investor returns, UBS analysts say. "We remain largely Buy rated across our coverage despite some of the upside being captured," the analysts say in a note. They expect gold to keep rallying because of ongoing geopolitical risks and resilient consumer demand. They reiterate UBS's forecast for US$2,900/oz gold by mid year, "which equates to circa A$4,500/oz or even higher if the weak A$ prevails." ([email protected]; @RhiannonHoyle)

1933 ET - NextDC keeps its bull at Morgans even as the Australian data-center operator's operating expenses ramp up. An analyst note from the brokerage points out that NextDC's earnings guidance does not include holding costs for a new Sydney center announced in October. The analysts raise their fiscal 2025 operating-expense forecast by A$2 million to account for this, rising to A$7 million in fiscal 2027. As a result, their annual Ebitda forecasts are trimmed by about 2% on an annualized basis. Target price falls 2% to A$20.00 but Morgans keeps an add rating on the stock, which is up 1.2% at A$15.62. ([email protected])

1924 ET - Japanese stocks are lower in early trade as uncertainty over the Bank of Japan's policy outlook continues. Videogame and real estate stocks are leading the declines. Konami Group is down 2.3% and Daiwa House Industry is 1.8% lower. Nintendo is down 4.4% after it said the successor to its Switch console would go on sale later this year. USD/JPY is at 155.39, compared with 156.18 as of Thursday's Tokyo stock market close. Investors are focusing on any monetary policy-related developments and conflicts in the Middle East. The Nikkei Stock Average is down 1.1% at 38143.78. ([email protected]; @kosakunarioka)

1915 ET - Tuas's bulls at Morgan Stanley see a chance that the Singaporean mobile-network operator could beat their annual earnings forecast. MS analysts forecast fiscal 2025 Ebitda of S$61.4 million for Tuas, citing its high margins and aggressive pricing. Yet they tell clients in a note that, by annualizing first-quarter Ebitda of S$16.1 million and adjusting for growth, they don't think that S$70 million is out of the question. Tuas has beat their expectations going back to fiscal 2022, they add. They point out that data elsewhere indicates that Tuas is on track for 225,000-255,000 net service additions in fiscal 2025, ahead of their 199,000 forecast. MS has an overweight rating and A$6.70 target price on the stock, which is down 0.1% at A$6.125. ([email protected])

1847 ET - Japanese stocks may fall as concerns about borrowing costs continue ahead of the Bank of Japan policy meeting next week. Nikkei futures are down 0.6% at 38420 on the SGX. USD/JPY is at 155.32, compared with 156.18 as of Thursday's Tokyo stock market close. Investors are focusing on any monetary policy-related developments and conflicts in the Middle East. The Nikkei Stock Average rose 0.3% to 38572.60 on Thursday. ([email protected])

1845 ET - Citi analyst Jack Dunn stays bullish on novated-lease providers Smartgroup and McMillian Shakespeare despite softer December-half vehicle sales in Australia. Pointing to a 5% fall in passenger vehicle and SUV sales, Dunn cuts his forecasts for both providers. He tells clients in a note that falling car prices due to dealer discounts and price competition between EV makers will weigh on company yields. Nonetheless, he still thinks that Smartgroup and McMillan Shakespeare will both report volume growth and keeps a buy rating on both stocks. Citi cuts its target price on Smartgroup 8.1% to A$9.60. Shares are down 0.3% at A$7.745. Citi cuts its target price on McMillan Shakespeare 8.2% to A$18.40. Shares are down 1.4% at A$15.20. ([email protected])

1837 ET - Rio Tinto's strong sales of its low-grade SP10 iron ore suggests demand for the steelmaking ingredient remains firm, Morgans' analyst Adrian Prendergast says in a note. The market's confidence in China's steel market in 2025 has been "understandably" rattled by the country's economic slowdown and the risk of a trade war with the U.S. "But pleasingly these tons are being digested by the global markets," Prendergast says. SP10 volumes accounted for 25% of Rio Tinto's shipments in 4Q, higher than in the first three quarters of 2024, when it accounted for closer to 18%.([email protected]; @RhiannonHoyle)

1827 ET - U.S. home sales in December were up 13.3% from December 2023, the eight month of 2024 to surpass 2023 sales, RE/MAX Holdings said in its housing report for the month. New listing rose 7.7% in December from the year-ago period, in contrast to declines in the past two Decembers, the report said. Homes saw a median sales price of $427,000, above December 2023's $402,000 but about $3,000 less than in November, according to RE/MAX. Erik Carlson, the company's chief executive officer, said 2024 showed some modest improvements in housing inventory, and added while affordability remains a challenge for many buyers, demand persists. ([email protected])

1832 ET - Australian bank stocks have no fundamental support that Citi analyst Brendan Sproules can see, whatever happens to local interest rates. Citi keeps sell ratings on all major, regional and business banks in its coverage, and Sproules thinks it is probably just a matter of time before investors' 2024 rotation from materials into financials is reversed. He wonders whether 2025 is the year in which this occurs, telling clients in a note that lenders' asset quality is continuing to deteriorate, costs remain stubbornly high, and that rate cuts would be negative for revenue expectations. He prefers Westpac and Commonwealth over other lenders due to their exposure to retail over business banking. ([email protected])

1813 ET - Costume jewelry retailer Lovisa could add more stores than the market expects through FY 2026, suggests Morgan Stanley, upgrading the stock to overweight, from equal-weight. Data point to an acceleration in store growth in January. "If the run-rate is sustained, we think this will be positively received by the market given store growth is the key share price driver, in our view," says analyst Joseph Michael. Lovisa's shares are down around 1/4 since hitting a high in August. That makes the risk-reward on offer increasingly attractive for investors, says Morgan Stanley, raising its price target by 12% to A$32.00/share. Lovisa ended Thursday at A$27.18. ([email protected]; @dwinningWSJ)

1734 ET - Strong growth in downloads of the ResMed app suggests that the breathing-tech developer could beat expectations for December-quarter device sales, Citi analysts suggest. They point to 17% on-year growth in U.S. downloads for the final three months of 2024, which compares with an average analyst forecast of 8.2% on-year growth in sales for the period. The Citi analysts, who also flag 22% on-year growth in U.S. monthly users for December, are looking for 10% on-year growth in device sales. Citi has a neutral rating and a A$37.07 target price on the stock, which is at A$37.54 ahead of the open. ([email protected])

1728 ET - Jefferies assesses what President-elect Trump's tariff threat means for car dealerships and the auto aftermarket, and concludes that it's not good news. Tariffs could lead to significantly higher retail pricing of vehicles and parts coming from China, analyst John Campbell says. That would hurt underlying demand. And given that consumer confidence remains fragile globally, car dealers and aftermarket suppliers may struggle to pass on cost inflation to customers, Jefferies says. That could squeeze their profit margins. "Whilst we feel some of this may be posturing on the part of the President, it remains a risk to both sectors," Jefferies says. It has an underperform call on ARB, and hold calls on Bapcor, Eagers Automotive and Peter Warren Automotive.([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires