0305 GMT - Zip's bull at UBS points out that the Australian installment-payment provider's disappointing trading update did include some positive news on costs. Analyst Tim Piper says that, while revenue margins were lower than he had anticipated, costs were also lower than expected. He also points out in a note to clients that Zip is performing well on bad debts, which remain low in both the U.S. and Australia, while total liquidity is increasing. UBS has a last-published buy rating and A$3.65 target price on the stock, which is down 23% at A$2.525. (stuart.condie@wsj.com)

0247 GMT - Droneshield has disappointed at least one of its bulls over the past 12 months, but the security tech provider's near-term outlook keeps them interested. Bell Potter analyst Daniel Laing tells clients in a note that 2024 revenue missed his forecast by 13% but that 2025 has started much more positively. Droneshield, which develops drone-detection hardware and software, has already contracted revenue equivalent to 83% of 2024's total. This is well ahead of expectations, Laing writes. He makes no changes to his annual revenue forecast, preferring to be conservative. Bell Potter trims its target price 8.3% to A$1.10 on higher operating-expense forecasts, but keeps a buy rating on the stock. Shares are up 5.1% at A$0.6725. (stuart.condie@wsj.com)

0241 GMT - Macquarie analysts stay cautious on Australian property advertiser Domain despite what they see as an attractive valuation. They tell clients in a note that they are waiting on news about the company's CEO search and any resulting strategy changes. They also want to see evidence that Domain, which is No. 2 in market share to News Corp-controlled REA, can deliver operating leverage while investing to stay competitive with its larger rival. Macquarie trims its target price 11% to A$2.85 and stays neutral on the stock, which is up 0.2% at A$2.675. News Corp. owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. (stuart.condie@wsj.com)

0229 GMT - REA Group's leading position among Australian property advertisers and double-digit EPS growth isn't enough to keep Macquarie analysts bullish on the stock. Lowering their recommendation to neutral from outperform, they tell clients in a note that the stock looks fairly valued at 51 times earnings, on a 12-month forward basis. The News Corp-controlled company has increased Australian residential revenue by an average of 13% over the last five years, and the analysts anticipate an average of 14% through fiscal 2027 on its products and pricing power. This should generate average EPS growth of over 20% over the same period, they add. Macquarie lifts its target price by 15% to A$265.00. Shares are up 1.1% at A$249.77. News Corp. owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. (stuart.condie@wsj.com)

0002 GMT - Westgold Resources looks hard pressed to meet annual gold-output targets after a soft 2Q, according to Euroz Hartleys. Westgold produced 158,255 oz of gold in 1H, falling well short of the bank's 187,000 oz forecast. That means Westgold now needs to produce some 246,000 oz of gold in 2H to meet its own annual guidance. Doing so involves a some 60% improvement on 1H output. "We do not believe the company will meet either cost, or production guidance in FY 2025," analyst Kyle de Souza says. Euroz Hartleys cuts its price target on Westgold by 21% to A$2.37/share, but retains a hold call on the stock. Westgold is down 2% at A$2.52. (david.winning@wsj.com; @dwinningWSJ)

2354 GMT - Macquarie thinks luxury car dealer Autosports is too optimistic about a market recovery in the near term. Autosports this week warned on 1H pretax profits, calling out tough conditions for new vehicle sales in November and December. Still, Macquarie highlights that Autosports has previously said it expects the operating environment in 2H to be similar to a year earlier. "However we expect organic new vehicle sales will remain under pressure," Macquarie says. "The market is cycling 2H of FY 2024 new vehicle registrations growth of 8.7% with a soft macroeconomic environment creating further downside risk." Macquarie has an outperform call on Autosports. (david.winning@wsj.com; @dwinningWSJ)

2346 GMT - Sims's earnings are likely to remain weighed down by challenging scrap-metal markets globally, even though margins have improved recently, contends Jefferies. Analyst Ramoun Lazar also says Sims's strategy to turn around its North America business is still unclear at a time when the U.S. market has become more competitive. Sims is due to report 1H earnings next month, and Jefferies thinks that's an opportunity for management to update the medium-term strategy. "However, with shares factoring in significant earnings improvement we see downside from current levels," says Jefferies, retaining an underperform call on the stock. (david.winning@wsj.com; @dwinningWSJ)

2339 GMT - BlueScope Steel's new bull thinks the Australian company could look to sell assets to shore up its balance sheet at a time when Asian steel spreads look likely to stay lower for longer. Jefferies lifts BlueScope to buy from underperform, and believes most headwinds are reflected in the stock's valuation. Analyst Ramoun Lazar identifies Coated Products Asia as an asset that BlueScope could sell. It thinks that business could attract a price tag of A$800 million-A$1.5 billion. "The ongoing sales process for US Steel and attractive outlook for U.S. steel demand could also present interest in North Star," Jefferies says. "However we would expect a significant premium would be required for BlueScope to consider divestment." (david.winning@wsj.com; @dwinningWSJ)

2331 GMT - Zip remains well-positioned for the remainder of its fiscal 2025 despite the Australian installment-payment provider's disappointing 2Q earnings, RBC Capital Markets analyst Jack Lynch reckons. While he thinks that softer Australia and New Zealand revenue yields in the December quarter will overshadow a strong U.S. performance in investors' minds, Lynch still sees plenty to be positive about. In a note to clients, he highlights strong growth in the value of U.S. transactions, a resumption in U.S. customer growth, an on target cash transaction margin, and a strong balance sheet. RBC has an outperform rating and A$3.60 target price on the stock, which is down 19% at A$2.65. (stuart.condie@wsj.com)

2306 GMT - Zip's Australia and New Zealand operations appear to be behind the buy-now-pay-later provider's weaker-than-expected December-quarter earnings, Citi analyst Siraj Ahmed says. Zip's U.S. revenue margin fell seasonally to 6.9%, in-line with Ahmed's expectations, but group revenue still slipped from the prior three months by more than he had anticipated. This resulted in cash earnings of A$35 million, well short of Ahmed's A$44 million forecast. Strong U.S. growth is already expected by investors, so the market may be disappointed that Zip has not maintained its recent track record of beating forecasts. Citi has a neutral rating and A$3.30 target price on the stock, which is at A$3.27 ahead of the open. (stuart.condie@wsj.com)

2250 GMT - Treasury Wine Estates' bull at Citi is waiting on June-half industry data before getting more excited about positive signs on exports to China. Analyst Sam Teeger tells clients in a note that it's possible to argue that the recovery of Treasury's exports to China--following the removal of that country's tariffs on Australian wine--is exceeding expectations given economic softness. Positive industry data is consistent with recent company comments, but Teeger points out that volumes could be a function of restocking activity and wants to see how this plays out over coming months. Citi has a buy rating and A$12.97 target price on the stock, which is at A$10.47 ahead of the open. (stuart.condie@wsj.com)

2151 GMT - A second consecutive quarter of strong production from Boss Energy's Honeymoon uranium mine materially improves Jefferies's confidence in the medium-term outlook for the asset. That view is supported by new disclosure from Boss on costs. "The low end of the maiden C1 cost outlook for 2H of US$23-25/lb is only 3% above our prior forecast of US$22.23/lb," analyst Mitch Ryan says. Jefferies retains a buy call on Boss, and raises its price target by 6.1% to A$3.50/share. Boss ended Wednesday at A$3.00. "Honeymoon continues to prove its technical capability, significantly de-risking the project," Jefferies says. "Boss is uniquely positioned, offering quality exposure with near-term production growth and an under contracted sales book." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires