0356 GMT - Insurance broker and underwriter Steadfast gets upgraded to buy from hold at Goldman Sachs, where analysts think that the Australian company looks cheap compared with global peers. They think that Steadfast will maintain its annual guidance despite moderation in commercial rates for small and medium enterprises. They see limited risk from strata reviews and reckon that Steadfast was tracking well through the first fiscal quarter, albeit performance looked to be acquisition led. Steadfast is trading at less than 18 times one-year forward earnings, which they write in a note is below mid-cycle multiples. GS keeps a A$6.50 target price on the stock. Shares are up 1.7% at A$5.795. (stuart.condie@wsj.com)
0329 GMT - Pro Medicus's bulls at Goldman Sachs lift their earnings forecasts for the next two full fiscal years following the Australian imaging-tech provider's latest contract wins. The GS analysts make no change to their forecast of 38% earnings growth in the current 2025 fiscal year, but lift expectations by 2% for fiscal 2026 and by 4% for fiscal 2027. They tell clients in a note that they don't anticipate any guidance to be provided with the company's first-half result announcement, but do expect positive commentary on the strength of its contract pipeline. GS lifts its target price by 8.9% to A$310.00 and keeps a buy rating on the stock. Shares are up 1.25% at A$287.48. (stuart.condie@wsj.com)
0318 GMT - Supermarket operator Woolworths is taking a step toward improved efficiency with its choice of bosses to lead its Australian and New Zealand retail units, Goldman Sachs analysts say in a note. They flag the Australia-listed company's belief that Annette Karantoni's knowledge of supply chains can deliver improvements in both organizational and operational efficiency at its domestic food business. They also think that Sally Copland looks well qualified to drive transformation initiatives in New Zealand due to her omni-channel and Australian experience. They add that the appointments provide investors with certainty on the shape of CEO Amanda Bardwell's leadership team. GS has a buy rating and A$36.10 target price on the stock, which is up 0.1% at A$29.79. (stuart.condie@wsj.com)
2332 GMT - As reporting season gets underway, Citi identifies Australian real-estate investment trusts that could positively surprise with their results. It thinks Ingenia Communities's earnings guidance could beat consensus hopes on stronger sales. Analyst Howard Penny tips Goodman to update its data center pipeline, driving growth expectations. "Stronger than consensus expected sales growth, and positive spreads could support growth" for mall owner Scentre, Citi says. And turning to GPT, Citi expects its annual result to start "setting a foundation for medium-term growth off a reasonable value." (david.winning@wsj.com; @dwinningWSJ)
2331 GMT - Crop chemicals producer Nufarm's earnings likely aren't immune from tit-for-tat trade measures taken by the U.S. and China, contends Macquarie. The U.S. has imposed an additional 10% tariff on Chinese imports, prompting Beijing to respond. Macquarie highlights that 28% of Nufarm's earnings are from North America, and the company relies heavily on sourcing agricultural chemicals from China to sell into markets including the U.S. Nufarm's costs are likely to rise as the trade war unfolds. Still, Nufarm has some production in the U.S. and recently upgraded its manufacturing capacity in Australia so has "some ability to self-source," says Macquarie. It retains a neutral call on Nufarm. (david.winning@wsj.com; @dwinningWSJ)
2318 GMT - Risks to Macquarie's balance sheet from its investments in renewable energy look manageable to Morgan Stanley. Analyst Andrei Stadnik estimates some A$2 billion of Macquarie's principal investments, or 18%, are in green energy. Still, only 10% of investments by Corio--Macquarie's unit focused on offshore wind-energy developments--are in the U.S. and exposed to policy shifts by the Trump administration. "Elsewhere, we estimate Macquarie booked a A$50 million gain on sale of Formosa 2 offshore wind in Asia, so offshore wind transactions are continuing," Morgan Stanley says. "Nonetheless, we have baked in a A$150 million 2H impairment charge for principal investments in renewables." (david.winning@wsj.com; @dwinningWSJ)
2224 GMT - Brambles may disappoint some investors by deciding against upgrading its annual guidance at its first-half result announcement, according to its bull at UBS. Analyst Andre Fromyhr writes in a note that the stronger U.S. dollar makes Brambles' free cashflow guidance more challenging than when it was announced. Even so, he expects the global pallet giant to maintain guidance. Fromyhr reckons that Brambles needs to consistently deliver US$800 million annual free cashflow without strong price growth or dropping capex before the stock rerates further. UBS lifts its target price 18% to A$22.50 and keeps a buy rating on the stock, which is at A$19.26 ahead of the open. (stuart.condie@wsj.com)
2214 GMT - Profit margins of Australian companies have probably already troughed at mid-cycle levels, UBS says. Many of Australia's biggest listed companies will report earnings this month, giving investors the chance to do a pulse check on trading conditions. Strategist Richard Schellbach highlights prior concerns about companies' ability to maintain profit margins. But these concerns were unfounded, UBS says, as management was able to pass costs on to their customers. "The latest monthly data points still show business selling prices moving commensurately with their input costs," UBS says. And with the unemployment rate remaining low over the past six months, "this dynamic of being able to pass through costs remains favorable in most industries," UBS adds. (david.winning@wsj.com; @dwinningWSJ)
2158 GMT - NextDC's bull at Citi sees a lack of contract announcements and not worries over the impact of DeepSeek as the most likely explanation for the data-center operator's share-price underperformance. Analyst Siraj Ahmed acknowledges that the stock has lagged peers, but tells clients in a note that the accelerated fit-out of Melbourne centers suggests that new contract wins are probably on the way. He cuts his target price on the stock by 6.5% to A$18.70 but reiterates his buy rating. Shares are at A$14.74 ahead of the open. (stuart.condie@wsj.com)
(END) Dow Jones Newswires