0321 GMT - There's strategic rationale for James Hardie's planned $8.75 billion takeover of AZEK, but the premium it has agreed to pay is significant, say Barrenjoey analysts in a note. At roughly 37% versus AZEK's last close, James Hardie will need to deliver on its expected cost benefits and notch strong underlying growth across the businesses to justify the transaction, the analysts say. "To get comfortable on the deal, we would need to gain more confidence in the accelerated growth profile of the combined group," they say. Pro forma leverage of 2.8x might also be in focus for investors given the uncertain demand backdrop, they add. Barrenjoey has an overweight rating and A$59.00 target on James Hardie. The stock is down 13% in Sydney at A$40.87. ([email protected]; @RhiannonHoyle)

0304 GMT - Brickworks' bull at Citi is looking beyond near-term demand challenges to what they say is an improving outlook, thanks to interest rate cuts. Analyst Suraj Nebhani acknowledges that the prevalence of long-duration mortgages in the U.S. could limit building activity there but is more positive about Australian building-products demand and Brickworks' real-estate portfolio. In a note, he writes that lower rates will benefit property asset values and that he also sees medium-term upside from rent increases. Washington H. Soul Pattinson's strong investment track record is also positive for Brickworks' stake in the business, Nebhani adds. Citi cuts its target price by 2.8% to A$31.60 and maintains a buy rating. Shares are down 0.75% at A$23.75. ([email protected])

0223 GMT - The strategies that Lottery Corp.'s retiring CEO will leave behind have potential to unlock capital management by the Australian lottery operator, according to its bull at Citi. Analyst Adrian Lemme tells clients in a note that initiatives to enhance the company's game portfolio and its proactive approach to seeking an early renewal of its Victoria state lottery license are all positive. He doesn't see any reason to worry about potential factors behind CEO Sue van der Merwe's departure, pointing out that she has worked in the industry for 35 years and led Lottery Corp. through its demerger from Tabcorp. Citi has a buy rating and A$5.60 target price on the stock, which is down 3.1% at A$12.88. ([email protected])

0035 GMT - Australian payment-services provider Cuscal gets a new bull against the backdrop of growing volumes of digital transactions. Bell Potter analyst Hayden Nicholson initiates coverage of the stock with a buy rating, telling clients in a note that it is a leading connector to the Australian payments landscape. Pointing to what he says is a track record of innovation, investment and timing, Nicholson highlights Cuscal's mobile-payments connectivity capability and its focus on developing longer-term solutions. He likes its limited customer churn, the reassurance offered by the length of existing customers' contracts, and the potential for new business wins outside of traditional banking. Bell Potter puts a A$3.40 target price on the stock, which is down 0.4% at A$2.70. ([email protected])

2348 GMT - TPG Telecom may decide not to raise its mobile prices this year in an attempt to build its customer numbers, Jefferies analysts write in a note. A Jefferies survey of Australian mobile users points to high levels of customer satisfaction across providers, despite the industry attracting twice as many complaints as banking. The analysts say that most consumers tend to stick with their provider, which suggests that TPG's improved network coverage from its asset-sharing arrangement with Optus may not attract many new users on its own. They write in a note that they could see Optus raising its prices soon, with Telstra potentially following suit in mid-2025. ([email protected])

2333 GMT - Dominance of Australia's supermarket sector by Coles and Woolworths seems set to continue following an industry report by the competition regulator, according to Morgan Stanley analysts. They tell clients in a note that the duo occupy an entrenched position in an oligopolistic market, and that they don't think that substantial moves to boost competition are likely in the foreseeable future. The MS analysts say that Coles and Woolworths do face ongoing and evolving competitive challenges, but see nothing in the regulator's proposals on supplier relations, promotional behavior, or price transparency to upset them. ([email protected])

22:40 GMT -- Australia's largest supermarket chains are unlikely to experience a material earnings impact from recommendations by the country's competition regulator, Citi analyst Adrian Lemme says. He sees negative near-term sentiment toward Coles and Woolworths due to media coverage of issues raised by the Australian Competition and Consumer Commission, but tells clients in a note that the regulator's report was largely benign. Importantly for the industry, there is no recommendation for the regulation of grocery pricing or the ways in which retailers can conduct promotions, he points out. ([email protected])

22:25 GMT -- The scale of Premier Investments' start-up losses from the entry of its Peter Alexander business to the U.K. surprises Citi analyst Adrian Lemme. Pointing out that Peter Alexander only launched in the U.K. late in the Australian retailer's fiscal first half, Lemme factors in deeper U.K. losses across his forecasts. This drives significant downgrades to his retail earnings forecasts for the next few years, he writes in a note. Citi lowers its target price 7.7% to A$24.00 and stays neutral on the stock. Shares are at A$21.85 ahead of the open. ([email protected])

22:16 GMT -- Citi analyst Brendan Sproules stays cautious on National Australia Bank despite the recent selloff in the lender's stock. Sproules acknowledges that the size of the large-cap's underperformance in such a short period of time might lead to suspicions that the selloff is overdone, but he tells clients in a note that the stock is still trading at a premium to peers ANZ and Westpac. He sees this premium coming under increasing pressure from rising competition on a slow business-banking environment. Management upheaval and deteriorating credit quality are also concerns, Sproules adds. Citi has a sell rating and A$26.50 target price on the stock, which is at A$33.18 ahead of the open. ([email protected])

(END) Dow Jones Newswires