0352 GMT - Mining-technology company Imdex is unlikely to enjoy an improvement in market conditions in 2H FY 2025, according to Citi analyst William Park. Exploration activity remains subdued and the timing of meaningful recovery remains opaque, Park says. He reckons the market is edging closer to an upcycle and that Imdex has a proven track record of being more resilient compared with the broader industry. Still, "we think recovery is likely to have stretched out to at least 1H FY26, with risk of prolonged weakness still intact," Park says. Citi retains a sell rating and A$1.95 target on the stock. Imdex is down 0.6% at A$2.575. ([email protected]; @RhiannonHoyle)

0300 GMT - BHP's unit costs at its BMA coal and Copper South Australia operations are likely to be above FY25 guidance in 1H, Citi analyst Paul McTaggart reckons. In its 2Q production report, BHP reiterated FY25 cost guidance, although said expenses at Copper South Australia may be in the upper half of its forecast range following a power outage in 2Q. BHP estimates FY25 unit costs at BMA of US$112-124/metric ton, and at Copper South Australia between US$1.30-US$1.80/pound. Citi has a buy rating and A$46.00 target on BHP. The stock is up 0.5% at A$40.44. ([email protected]; @RhiannonHoyle)

0208 GMT - The price BHP got for its iron ore in 1H disappoints, falling more than rival Rio Tinto, Jefferies analysts say. "While BHP operated relatively well at WAIO in the first half of its fiscal year, the decline in its average realized iron ore price from US$103.70/wet metric ton in 1H24 to US$81.11/ton in 1H25 was greater than we had expected," the analysts say in a note. Even as rival Rio Tinto sold significantly more of its low-grade SP10 ore, its average price only went from US$100.80/ton to US$82.50/ton over the same period, the analysts say. BHP is up 0.6% at A$40.47.([email protected]; @RhiannonHoyle)

0031 GMT - Jefferies sees wage negotiations at public hospitals as an important signal for Ramsay Health Care in its own talks. Enterprise bargaining agreements for nurses at public hospitals are due in three states--New South Wales, Queensland and South Australia--this year. The outcome will likely be reflected in the private hospital sector, impacting Ramsay, analyst David Stanton says. Ramsay needs to negotiate new enterprise bargaining agreements in all states except South Australia this year. First up is New South Wales, which accounts for some 24% of the company's EBIT. "Changes in labor costs are likely to lead to changes in Ramsay's group profitability, as we believe there are minimal offsets possible for employee cost increases," Jefferies says. ([email protected]; @dwinningWSJ)

0029 GMT - BHP's copper arm is the standout of its 2Q result, beating consensus production expectations, says RBC Capital Markets analyst Kaan Peker. Most other commodities are broadly in-line, he says. A downgrade to Copper South Australia FY25 output guidance was anticipated after a weather-related power outage, Peker says. Realized pricing is weaker than Peker projected, with copper and iron ore prices missing RBC's expectations. This will likely weigh on FY25 consensus earnings-per-share and free cashflow estimates, Peker says. BHP's net debt projection is also above RBC's and the market's expectations, he adds. RBC has a sector perform rating and A$45.00 target on BHP. The stock is up 1.4% at A$40.80. ([email protected]; @RhiannonHoyle)

0022 GMT - National Australia Bank shakes off its bear at Macquarie, where analysts see relative valuation appeal to rivals Commonwealth and Westpac. They raise their recommendation on NAB to neutral from underperform, calling the move a tactical upgrade. The analysts write in a note that the stock is trading at a broadly similar multiple to Westpac, but offers attractive longer-term exposure to resilient small- and medium-sized enterprises. This sector is less homogenous than retail banking and likely to offer better returns, they add. Macquarie lifts its target price on NAB by 11% to A$36.00. Shares are up 2.7% at A$39.11. ([email protected])

0000 GMT - Macquarie analysts see some chance that Australian banks could beat their fiscal 2025 earnings forecasts, but warn that this is already priced in. They tell clients in a note that they can see a 1%-2% upside risk to earnings from funding costs and volumes, but that this is "well and truly been reflected in valuations". That said, they don't see any clear catalyst for bank stocks to underperform in the near term despite them being the most expensive in the market. Underperformance is more likely over the medium term, they add. Neutral-rated NAB is their pick of ASX-listed banks. ([email protected])

2338 GMT - Computershare loses another bull following the stock's recent strong rally on interest-rate curves. Citi analyst Nigel Pittaway tells clients that he is reluctant to cut his recommendation to neutral from buy given other sources of potential upside available to the stock, but that a pause in its ascent seems likely. He sees potential for M&A from Computershare's strong balance sheet and some optimism for activity in its corporate actions and debt issuance units. He writes in a note that the Australian share-registry provider's annual margin income should stay at about US$650 million-US$700 million even if rates fall. Citi raises its target price by 17% to A$35.00. Shares are down 1.6% at A$33.65. ([email protected])

2336 GMT - Iress's bulls at Wilsons expect the Australian financial-tech provider to spend the rest of its 2025 fiscal year increasingly focused on cost efficiencies following its decision to sell its superannuation business. Wilsons' analysts see the sale as a definitive pull by Iress on a key lever for near-term earnings momentum. Without a divestment, a sharp turnaround would have been needed, they write in a note. They tell clients that the proceeds won't be entirely spent on retiring debt and think that M&A activity is possible. Wilsons keeps an overweight rating and A$11.00 target price on the stock, which is up 0.9% at A$9.725. ([email protected])

2218 GMT - The U.S. is unlikely to follow through on President Trump's threat of 60% tariffs on goods from China, Citi's economists say. They view campaign-trail threats of eye-watering tariffs on China and other countries as largely a prelude to negotiations. They write in a note that they have penciled in a 5 percentage-point increase in the overall U.S. effective tariff rate this year, putting upward pressure on U.S. prices and downward pressures on real incomes globally. The Citi economists see average U.S. tariffs rising from roughly 2-3% to 7-8%, reflecting a 10-15 percentage-point increase in tariffs on China and some other changes. ([email protected])

2214 GMT - Iress has done very well to sell its superannuation business for at least A$40 million, says Jefferies analyst Simon Fitzgerald. He notes the business recorded an Ebitda loss of A$3.6 million in 1H. "The superannuation service industry has been challenging for many involved, with fee erosion, contract losses, service complexity and in-sourcing resulting in declining operating margins," Jefferies says. It raises EPS forecasts for FY 2025 and FY 2026 by 3% and 2%, respectively, and lifts its price target on Iress by 9.7% to A$10.15/share after removing losses from the superannuation business. Iress ended Monday at A$9.64. ([email protected]; @dwinningWSJ)

2208 GMT - The option value for Gold Road's Gilmour gold deposit lies in feeding the Gruyere processing plant if other ore sources aren't available, Jefferies says. Analyst Mitch Ryan says existing feed from the Gruyere open pit, Gruyere underground mine and Golden Highway are likely to have a higher priority. "Gilmour creates opportunity in the blending and feed strategy for the broader Gruyere project, facilitating flexibility in the broader mine plan," he says. Gold Road yesterday outlined an ore reserve of 1.5 million tons grading at 4.1 grams of gold per ton. ([email protected]; @dwinningWSJ)

2159 GMT - The time isn't yet right for investors to acquire stock in Australian engineering contractor Imdex, despite its track record of being more resilient than the broader industry, says Citi. Raisings by small exploration companies were again soft in December, signaling that activity levels will stay subdued. "The cycle will no doubt turn, but we think the timing is unlikely to be in 2H FY25," analyst William Park says. "On that basis, we think there could be a more attractive entry point post-1H result and retain our Sell rating." ([email protected]; @dwinningWSJ)

2151 GMT - Perpetual's payout ratio is unlikely to be too aggressive when it reports 1H earnings next month, reckons Citi. That's because the Aussie fund manager's debt levels are relatively high, analyst Nigel Pittaway says. Citi now forecasts Perpetual's annual dividend at the bottom end of its target payout range of 60-90% of underlying profit. "We see some risk even this could be optimistic," Citi says. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires