0300 GMT - Kelsian's plan to consider divesting its Australian tourism assets indicates that they are not delivering returns in line with the transport operator's new targets, RBC Capital analyst Owen Birrell says. It seems clear that the businesses are not achieving the ASX-listed company's recently announced ambition for a return on invested capital of 200 bps above the pre-tax weighted average cost of capital. Offloading these assets should accelerate these targeted returns, with any cash sale allowing Kelsian to reduce its debt ratio closer to the target. RBC has a last-published sector perform rating and a A$3.50 target price on the stock, which is up 6.4% at A$2.735. ([email protected])

0042 GMT - Confidence among Australian beef producers and processors has already been shaken by the threat of U.S. tariffs, according to the head of Agribusiness Industry Insights at ANZ Bank. Australia exported almost 395,000 tons of beef to the U.S. in 2024, making it the country's largest overseas supplier of the meat. Uncertainty is already weighing on industry sentiment, Michael Whitehead says, with participants worried about potential pressure on cattle prices. With a federal election scheduled for next month, the issue could become a major point of contention for Australian policymakers, he adds in a note. ([email protected])

0012 GMT - Bell Potter analyst Baxter Kirk says the new Phoenix Link game from Australia-based slots maker Aristocrat is growing at a record pace, according to his review of data from gaming consultancy Eilers & Krejcik. Kirk tells clients that the Phoenix Link game has grown to 750 units, and that four months of game performance data shows the game is likely growing its install base ahead of expectations. Although consumer sentiment has weakened in the U.S. amid high inflation expectations, Kirk notes there hasn't been a relationship between U.S. gross gaming revenues and consumer sentiment, though he says tariff uncertainty could still add to risks. He adjusts his target price on Aristocrat to A$83/share from A$85/share, but retains a buy rating. ([email protected]; @Mike_Cherney)

0001 GMT - Morgan Stanley pushes back on investor concerns that costume jewelry retailer Lovisa's store rollout is losing steam. While store growth slowed to 99 net additions in FY 2024, from 172 in FY 2023, MS notes that momentum has improved since Lovisa's annual shareholder meeting in November. So, consensus hopes for Lovisa to add 100-115 stores annually in FY 2025-2027 look low. Those forecast imply a modest two stores in each market annually, analyst Joseph Michael says. MS is also hopeful that Lovisa's new store concept called Jewells in the U.K. will gain traction and lengthen the company's "growth runway by tapping into a different segment of the market." ([email protected]; @dwinningWSJ)

2346 GMT - Goodman's prospects are grounded in its traditional warehouse business and emerging opportunity in data centers, but what is each business worth? Morgan Stanley attempts to answer that question, estimating the core industrials business would be valued by investors at around A$20-A$25/share while noting that its EPS is growing at a compound annual rate of some 9%. At the same time, the market appears to be factoring in A$3-A$6/share for Goodman's data center business, analyst Simon Chan says. "At an estimated A$0.25-A$0.30/share FY 2026 EPS for this powerbank, it implies a mid-teens price-to-earnings multiple," MS says. It rates Goodman at overweight and trims its price target by 8.1% to A$37.50. Goodman is up 1.5% at A$29.63.([email protected]; @dwinningWSJ)

2344 GMT - Morgan Stanley pushes back on investor concerns that costume jewelry retailer Lovisa's store rollout is losing steam. While store growth slowed to 99 net additions in FY 2024, from 172 in FY 2023, MS notes that momentum has improved since Lovisa's annual shareholder meeting in November. So, consensus hopes for Lovisa to add 100-115 stores annually in FY 2025-2027 look low. Those forecast imply a modest two stores in each market annually, analyst Joseph Michael says. MS is also hopeful that Lovisa's new store concept called Jewells in the U.K. will gain traction and lengthen the company's "growth runway by tapping into a different segment of the market." ([email protected]; @dwinningWSJ)

2341 GMT - The revenue benefits that Westpac derives from its multiyear tech overhaul will partly depend on the response of its Australian banking peers, Morgan Stanley analysts warn. They write in a note that the project has significant execution risk and see a chance that it will cost more and save less than the lender expects. They point out that the initiative is currently expected to cost about A$3 billion, take five years to implement, involve 60 initiatives, cover three divisions, and be implemented by a new management team. Other major banks will respond in their efforts to maintain or grow their share of core markets, they say. MS has an underweight recommendation on Westpac. ([email protected])

2340 GMT - Morgan Stanley analysts are surprised that HMC Capital opted to establish its new private-equity fund with existing money. They tell clients in a note that they had expected the Australian investment manager to establish the fund with net new inflows. With HMC paying out A$150 million of distributions from its initial fund, the MS analysts point out that the second fund will commence with a smaller asset pool than the first. Lowering their assumptions around asset-under-management growth, the MS analysts cut their target price by 40% to A$7.35 and keep an equal-weight rating on the stock. Shares are down 0.8% at A$5.96. ([email protected])

(END) Dow Jones Newswires