0039 GMT - Australian retail sales data have bolstered Citi's conviction in JB Hi-Fi and Harvey Norman. The data showed a 6.7% increase in sales in the electrical category in the three months through December. Analyst Adrian Lemme notes JB Hi-Fi typically grows much faster than this official measure. So, Citi sees material upside to consensus expectations of 5% like-for-like sales growth by JB Hi-Fi in the December quarter. Its own forecasts are for 8.4% growth. "Harvey Norman also looks well positioned into results given the improvement in the Electrical and Furniture categories," Citi says. It expects Australia's central bank to cut interest rates three times this year, starting this month. "This should further support the consumer recovery we have been forecasting," Citi says. ([email protected]; @dwinningWSJ)

0023 GMT - Drivers of Westgold's downgrade to FY 2025 production guidance are likely to spill into the following year as well, reckons Macquarie. Westgold expects to produce 330,000-350,000 oz of gold in FY 2025, down from a prior projection of 400,000-420,000 oz. It expects to dig up gold at a higher cost, forecasting all-in sustaining costs, or AISC, of A$2,400-A$2,600/oz. "We also assume the slower ramp-up of Bluebird and Beta Hunt, and softer grades at Big Bell, carry over into FY 2026 and cut production 10% while AISC lifts 4%," says Macquarie, referring to Westgold's mines. Still, Macquarie's revised outlook equates to a 32% year-over-year increase in production in FY 2026. It retains an outperform call on Westgold's stock. ([email protected]; @dwinningWSJ)

0001 GMT - UBS takes billboard owner oOh!media off its buy list, despite outdoor advertising outperforming the broader advertising industry in 2024. Analyst Evan Karatzas says oOh!media needs to show it has reversed, or at least stabilized, the significant market share losses of last year. Until then, UBS says it doesn't have "comfort oOh!media can deliver an appropriate return on invested capital on what remains a significant level of capex spend (circa 10% of sales)." UBS highlights that oOh!media's return on invested capital has now fallen below its cost of capital to 9%. UBS downgrades oOh!media to neutral, from buy, and cuts its price target by 32% to A$1.25/share. ([email protected]; @dwinningWSJ)

2352 GMT - The more than 8% drop in Origin Energy's share price that followed a downgrade to annual production guidance for the Australia Pacific LNG project was overdone, contends UBS. The stock reaction ignores several tailwinds that could trigger upgrades to consensus earnings expectations for FY 2026, analyst Tom Allen says. They include a 15%-20% decline in current coal prices, UBS says, noting 45% of Origin's coal costs are unhedged. Origin also wants to expand a battery at the Eraring power station in Australia to become one of the largest battery storage systems in the world. "We do not believe these incremental earnings (A$100 million per annum from 2H FY 2026) are factored into consensus estimates," UBS says. It keeps a buy call on Origin's stock. ([email protected]; @dwinningWSJ)

2337 GMT - Breathing device maker Fisher & Paykel Healthcare's shares rise 2.5% to claw back some of Monday's steep fall, helped by President Trump agreeing to a monthlong delay to a levy on imports from Mexico. In a note, analyst Matt Montgomerie thinks the tariff threat shouldn't have a material impact on F&P Healthcare's valuation at this stage because the tariffs may ultimately be reversed or revised. Also, F&P Healthcare can shift production back to New Zealand and use Mexico as a hub for other markets. "The latter would take time to implement, but over the long term there shouldn't be a material change in F&P Healthcare's gross margin outlook," Forsyth Barr says. "This is confirmed by F&P Healthcare still expecting to reach its 65% target, albeit two to three years later than its original FY 2027/FY 2028 expectations." ([email protected]; @dwinningWSJ)

2201 GMT - Aeris Resources held less cash at the end of 2Q than expected by Ord Minnett, which retains a hold call on the stock as it balances long-term value with a stretched balance sheet. Aeris reported A$26 million in cash at end-December, some A$4 million less than projected by Ord Minnett and despite a lower capital spend. Aeris experienced operational challenges at its Tritton copper mine, with output some 27% below Ord Minnett's forecast and costs around 27% higher. "The Tritton issues appear to have been somewhat rectified as FY 2025 guidance is unchanged with improved grades/tons set to come from Bugderygar, Avoca Tank and Murrawombie," says Ord Minnett, referring to other Aeris-owned pits. ([email protected]; @dwinningWSJ)

2155 GMT - Fisher & Paykel Healthcare could manufacture more in New Zealand over time as it adjusts to U.S. tariffs on Mexico where it has factories, but such an approach is constrained by staff availability, Jefferies says. F&P Healthcare makes around 45% of its products in Mexico, which President Trump hit with a 25% tariff. "During the pandemic, F&P Healthcare ran its New Zealand facilities 24/7 but shift patterns are currently 16/5 implying considerable ability to increase capacity," analyst Vanessa Thomson says. On staff, F&P Healthcare could benefit from higher unemployment in New Zealand. But this would be partly offset by lower net migration, Jefferies says. "F&P Healthcare would also need new regulatory approval to sell products manufactured in different facilities which may take some months, especially if there is an increase in applications for approval," Jefferies adds. ([email protected]; @dwinningWSJ)

2149 GMT - Packaging company Amcor's newest bull says organic growth is key to unlocking long-term value for shareholders. Jefferies, which raises Amcor to buy from hold, points out that Amcor's volume growth has been anemic since it bought Bemis some years ago. "We estimate cumulative volumes have declined 5%, or 1% per annum since FY 2019, raising concerns around the outlook for plastic packaging and valuation multiple investors are willing to pay," analyst Ramoun Lazar says. Amcor recently agreed to buy Berry, which has a similarly weak track record. Amcor expects deal savings to drive growth in new business areas. "We are not yet convinced (consensus also skeptical) with Jefferies's long-term volume forecasts circa 0-1% per annum," Lazar says. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires