0358 GMT - The lack of a share buyback from QBE surprises its bulls at UBS. The investment bank's analysts tell clients that the Australian insurer's above-target capital ratios at the end of 2024 could have supported capital-management initiatives. The capital ratio even looks set to move higher, the UBS analysts write in a note. They reckon that QBE's annual result looked strong, with 3% gross written premium growth among the highlights. UBS has a last-published buy rating and A$23.85 target price on the stock, which is up 4.2% at A$20.92. ([email protected])

0354 GMT - Brambles' improved outlook for 2H free cash flow changes little for its bulls at UBS, who already expected the pallet giant to surpass its US$750 million annual target. In a note to clients, they state that, given the absence of major investments by Brambles in its asset serialization initiative, their medium-term free cash flow targets are already well above the company's minimum target. They also note that the stock's 17% discount to the ASX industrial sector suggests that investors have yet to fully price in the renewed strength in Brambles' free cash flow outlook or its innovation investments. UBS raises its target price by 1.3% to A$22.80 and maintains a buy rating on the stock, which is down 2.2% at A$19.50. ([email protected])

0352 GMT - Telstra's plan to reallocate A$800 million of capital expenditure into its mobile business over next four years should help maintain the local leadership of its network, UBS analysts say. They tell clients that the investment should improve reliability, speed and efficiency, with management continuing to focus on improving return from invested capital. They also see scope for further capital-management initiatives from Australia's largest telecommunications provider. UBS lifts its target price on the stock by 2.3% to A$4.50 and keeps a buy rating. Shares flat at A$4.14. ([email protected])

0128 GMT - Beacon Lighting is nearing an inflection point in the rate of earnings growth, says Morgans, as momentum in its trade business continues and lower interest rates give retail sales a shot in the arm. Analyst Emily Porter says Beacon Lighting has around 5% of a A$2 billion trade market for lighting and ceiling fans in Australia. "Building up share from this low base can more than offset the effect of a subdued overall market," says Morgans, which has an add call on the stock. The bank also points to signs that the retail cycle is beginning to turn. "We expect this to gather force as the recent interest rate cut by the Reserve Bank of Australia stimulates a recovery in consumer confidence," Morgans says. ([email protected]; @dwinningWSJ)

0115 GMT - Chalice Mining's metallurgical breakthrough signals lower operating costs at its Gonneville deposit in Western Australia and reduced complexity, but it may not satisfy investors, suggests Barrenjoey. Chalice says it's now able to produce copper and nickel concentrates from low-grade composites, removing the need for a high-cost hydrometallurgical process. Analyst Richard Knights says Gonneville could now generate a 19% internal rate of return. "However, our project net present value is still comfortably less than Chalice's market cap (A$565 million), even after modelling a debt funded doubling of capacity after four years of operation." Chalice needs a step-change in palladium prices or an ability to feed higher grade material to the plant for longer to excite investors, Barrenjoey adds. It retains an underweight call on the stock. ([email protected]; @dwinningWSJ)

0045 GMT - Sonic Healthcare's earnings guidance looks achievable, if not conservative, to Morgans after the pathology services company took another step toward turning a corner in the pandemic's aftermath. Sonic expects FY 2025 Ebitda of A$1.70 billion-A$1.75 billion when currency swings are stripped out, and Morgans believes that strong underlying revenue growth supports that outlook. "After years of trying to right-size the cost base to better reflect the post Covid-19 world, labor costs are 'just about there', with operating leverage returning and profitability improving," analyst Derek Jellinek says. The bank is also upbeat about the potential for acquisitions and contract gains through the medium term. Sonic is down 1.4%. ([email protected]; @dwinningWSJ)

0017 GMT - Whilst Peter Warren Automotive's 1H pretax profit was within its guidance range, it was a low bar to reach after the Australian car dealer downgraded expectations in December, Jefferies says. Peter Warren Automotive reported an underlying pretax profit of A$7.1 million, down 79% on a year ago. Its outlook statement was also downbeat, citing challenging conditions for new car sales. "It seems like more of the same for Autos--oversupply, soft demand and margin pressure with management focusing on hard to reduce operating expenses/revenue," analyst John Campbell says. "It's hard for us to see any material profit turnaround whilst these conditions persist." Jefferies has a hold call on Peter Warren Automotive, which is down 11% today. ([email protected]; @dwinningWSJ)

0941 GMT - Rio Tinto's 2024 results were broadly in line with expectations and the Anglo-Australian mining company provided a steady outlook for the future, energy and materials analyst at Quilter Cheviot Maurizio Carulli writes. It is reassuring to see that group earnings decreased by only 2% despite an 8% fall in iron-ore prices, he writes. While acquisitions pushed net debt up to $5.5 billion in 2024, it remains at comfortable level, he says. The miner boasts a solid portfolio of assets and the significant barriers to entry in iron ore and copper strengthen Rio Tinto's market position, he writes. Rio Tinto's London listed shares rise 0.75% to 5,074.00 pence.([email protected])

(END) Dow Jones Newswires