0112 GMT - Australian wealth manager AMP's banking business should surprise positively in 2025, contends Morgan Stanley. AMP's banking business stabilized during 2024, with earnings rising to A$37 million in 2H, from A$35 million six months before. Analyst Andrei Stadnik says AMP's launch of a small business and consumer digital bank in February "should improve the deposit mix via lower cost transaction accounts." Combined with easing competition for deposits among Australian lenders, this could help AMP's bank earnings to beat expectations as FY 2025 evolves, Morgan Stanley says. ([email protected]; @dwinningWSJ)

0109 GMT - GPT's shares rise 4.3% after its annual earnings guidance beats expectations, although Jarden says the Australian property company's distribution outlook signals challenges remain. GPT expects funds from operations of 32.5-33.1 Australian cents per security in 2025, representing 1%-3% growth on the prior year. Analyst Lou Pirenc says that was better than he expected, which was an outcome at the bottom end of the range. Still, GPT also projected a flat distribution of A$0.24/security, which "suggests pressure on cash flow/adjusted funds from operations to remain real," Jarden says. It keeps a neutral call on the stock. ([email protected]; @dwinningWSJ)

0038 GMT - Cochlear looks fairly valued to Macquarie analysts following the share-price slump that followed the hearing-implant maker's first-half result. The analysts tell clients in a note that while December-half group unit sales and services revenue fell short of market expectations, there were still things to like about the Australia-listed company's latest update. Developed-market unit sales were up 6% on year on demand from adults and seniors, while group unit sales are still expected to grow by 10% going forward. EBIT was slightly higher than the Macquarie analysts had anticipated thanks to lower costs. Target price falls 2.4% to A$282.15 but Macquarie stays neutral on the stock, which is up 2.8% at A$270.11. ([email protected])

2359 GMT - Westpac's first-quarter result shows Australia's third-largest bank is managing its underlying performance better than its peers, Citi analyst Brendan Sproules says. He points out that Westpac's December quarter revenue grew at twice the pace of its costs, something that he hasn't seen at other major Australian banks. He does wonder whether net interest margin looks low at 1.82, but tells clients in a note that the result was good across the board. Westpac remains Sproules's preferred Australian bank stock, albeit with a sell rating. Citi has a last-published A$26.25 target price on the stock, which is down 5.3% at A$32.88. ([email protected])

2352 GMT - Temple & Webster's annual earnings-margin guidance gives the Australian furniture retailer room to accelerate marketing efforts arising from improving consumer sentiment, Citi analyst Sam Teeger says. He tells clients in a note that the company's ability to deliver both growth and margin over its recent fiscal 1H leaves him more confident that operating leverage and AI-driven consumer interaction can support margin expansion over the long term. Teeger is unconcerned by the slower-than-expected start to the June half and is positive that Temple & Webster has the flexibility to invest in additional marketing as the macro backdrop improves. Citi lifts its target price 56% to A$21.10 and keeps a buy rating on the stock, which is down 0.6% at A$17.93. ([email protected])

2331 GMT - BlueScope's 1H underlying Ebit is a 5% beat versus consensus, and a 9% lift in Australian Colorbond volumes suggests residential demand may have turned a corner faster than expected, says Citi analyst Paul McTaggart. While 2H underlying Ebit guidance is below consensus of A$443 million, expectations of A$500 million in future annual earnings from growth projects is a positive, McTaggart says. Citi has a buy rating and A$24.00 target on BlueScope. The stock is up 8.5% at A$24.24/share. ([email protected]; @RhiannonHoyle)

2325 GMT - Cochlear shakes off its bear at UBS thanks to the 14% share-price dive that followed the hearing-implant maker's 1H result. Analyst Laura Sutcliffe raises her recommendation on the Australia-listed stock to neutral from sell, telling clients in a note that the result wasn't as bad as it looked. She isn't totally convinced by the company's expectation of 10% implant unit growth in the June half, calling it a big ask. However, she sees Cochlear's confidence in such a growth rate going forward as important. UBS lifts its target price 5.6% to A$285.00. Shares are up 2.6% at A$269.64. ([email protected])

2314 GMT - The a2 Milk Company's 1H result is likely to prompt market watchers to raise their earnings forecasts, Wilsons analysts reckon. They tell clients in a note that the dairy products manufacturer is progressing well against its strategic priorities, and gaining market share in China across multiple channels. This shows effective brand management, they say. Operating cashflow was much stronger than Wilsons had expected, helped by the timing of inventory purchases and marketing activities. Wilsons is reviewing its market-weight rating on the stock. Shares are at A$5.95 ahead of the open. The company's New Zealand-listed stock is up 13% at NZ$7.45. ([email protected])

2313 GMT - UBS analysts say the strong fares momentum in late 2024 has slowed, noting that Australia domestic fares are currently tracking down 4% year-over-year. The drop in fares comes despite a similar drop in capacity due to the exits of Rex and Bonza. Australia international fares, meanwhile, have slowed to 2% year-over-year growth. Although Qantas could still post a better-than-expected result in 1H, UBS says the outlook appears more challenging later in FY 2025 and into FY 2026. The picture is slightly better in New Zealand, with Air NZ domestic fares growing at 1% and Air NZ international fares growing at 3%. UBS has neutral ratings on both Qantas and Air NZ. ([email protected]; @Mike_Cherney)

(END) Dow Jones Newswires