0434 GMT - Dyno Nobel reports strong 1H operating cash flow--of A$373 million versus consensus of A$40 million--which results in lower-than-expected net debt, say Barrenjoey analysts in a note. The explosives company's update on the sale of key parts of its fertilizers business is positive, they say. They also highlight the resumption of Dyno's share buyback. Its 1H Ebit is broadly in line with market expectations, the analysts say, adding that strength in the Americas offset weakness in Asia. Barrenjoey has an overweight recommendation and A$3.45 target on Dyno. The stock is up 2.1% at A$2.625. ([email protected]; @RhiannonHoyle)

0434 GMT - An investigative report airing on Australia's ABC television channel is unlikely to have a material negative impact on Wesfarmers' key hardware chain Bunnings, say Jefferies analysts Michael Simotas and Naveed Fazal Bawa. Media attention on profits at grocers Coles and Woolworths during the current cost-of-living crisis have hit their brand reputation, but Bunnings is loved by consumers and is the country's most trusted brand according to some measures, the Jefferies analysts say. According to Jefferies, the ABC "Four Corners" report will accuse Bunnings of abusing its market power relating to suppliers, margins and pricing. But the analysts say Bunnings' margins aren't excessive compared with peers. "Previous attempts to criticize Bunnings haven't landed because consumers love Bunnings & the purchase occasion is more enjoyable than grocery, which can be a grudge," the Jefferies analysts say. ([email protected])

0250 GMT - The recent departure of the directors on Mineral Resources' ethics and governance committee represents "a significant step backwards in seeking to address the serious governance concerns," says Hesta CEO Debby Blakey. Hesta, an Australian pension fund, has subsequently sold its shares in the Australian miner. "Given these departures and the forthcoming succession of the chair, we don't currently see a path to our concerns being addressed," Blakey says in a statement. She says Hesta may reconsider its position if Mineral Resources can provide "a demonstrated pathway" to address Hesta's governance concerns and an effective mechanism to prevent similar issues from happening again. It also wants "a timely and orderly succession" of managing director and founder Chris Ellison. ([email protected]; @RhiannonHoyle)

0119 GMT - Macquarie shakes off its bear at Citi, where analyst Thomas Strong thinks that management are striking the right tone in a challenging environment. Strong raises his recommendation on the stock to neutral from sell, telling clients that the Australian investment bank is successfully balancing conservatism with optionality in its asset portfolio. The economic cycle is uncertain but Macquarie has options to improve return-on-equity, he says. Strong sees what he calls latent potential in the reinvestment of public-markets proceeds and the exit from green investments. Citi raises its target price 13% to A$200.00. Shares are up 2.1% at A$207.62. ([email protected])

0117 GMT - Gentrack's contract pipeline is likely to be a focus of investors at the software company's 1H result, says Forsyth Barr. Gentrack hasn't confirmed a major customer for its g2.0 technology since Genesis Energy in 2023. So, analyst James Lindsay thinks Gentrack must provide confident messaging about the strength of its pipeline for investors to look through any near-term weakness in performance. Gentrack has been actively hiring in Bulgaria, Forsyth Barr says, raising hopes that a contract may be forthcoming there. "We expect Gentrack to retain its medium-term growth guidance but see downside risk to consensus revenue in FY 2025 if material contract wins have not been secured," Forsyth Barr says. ([email protected]; @dwinningWSJ)

0112 GMT - REA's bull at Citi doesn't expect its position in Australian real-estate advertising to change much over the next three years, despite the potential for increased investment by its largest rival. Analyst Siraj Ahmed tells clients in a note that REA's product execution is likely to insulate it from a material impact over that timeframe, with management waiting to see what CoStar's likely takeover of Domain means for its rival. Citi has a buy rating and A$275.00 target price on the stock, which is down 1.05% at A$242.41. REA is controlled by News Corp, which owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal. ([email protected])

0052 GMT - Morgan Stanley analysts see a few options for News Corp. and its newfound net-cash position. They think that the market is underestimating the potential impact of what they say is the media conglomerate's first net-cash position for a long time. The business is less capital intensive and generating more free cashflow, they tell clients in a note. They suggest that, with its interest in Foxtel cable-TV divested, News Corp. could embark on M&A, reinvest in its existing business, or return capital to shareholders. MS keeps an overweight rating and US$37.00 target price on News Corp.'s U.S. stock, which last traded at US$32.57. News Corp.'s Australia-listed securities are down 2.3% at A$51.91. News Corp owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal. ([email protected])

0030 GMT - Morgan Stanley analysts see potential for Macquarie shares to rerate over time as management improves operating leverage and return-on-equity. The MS analysts keep an equal-weight rating on the stock, but tell clients in a note that they can see progress on both fronts. With headcount down and an increased focus on costs and automation, they think that the Australian investment bank's operating leverage could surprise to the upside as revenues recover. They think reckon that the asset-management arm's efforts to lift returns and growth are key to improving group return-on-equity. MS raises its target price 4.2% to A$199.00. Shares are up 2.9% at A$209.16. ([email protected])

0017 GMT - REA shares are unlikely to rerate while CoStar's takeover of rival Domain threatens to increase competition in Australian real-estate advertising, according to a Macquarie analyst note. With shares in News Corp-controlled REA already trading at 49 times earnings, the note says that there is little to justify anything more positive than the investment bank's current neutral rating on the stock. Domain's likely future under CoStar is still unclear, but the note suggests that increased investment by the U.S. company is a possibility. Macquarie trims its target price on REA by 1.9% to A$265.00. Shares are up 0.1% at A$245.11. News Corp owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal.([email protected])

2338 GMT - Aristocrat Leisure has significant balance sheet capacity for M&A amid speculation it could be lining up a deal in the U.S., says Morgan Stanley. Aristocrat had net debt of A$1.14 billion at the end of FY 2024. Its net debt-to-Ebitda ratio of 0.4x was well below a target range of 1.0-2.0x. Analyst Melinda K. Baxter notes that Aristocrat received US$600 million in proceeds from the sale of its Plarium business, of which US$250 million will be used to repay some debt. "Based on Aristocrat's target net debt range and inclusive of the additional US$600 million in proceeds, Aristocrat has debt headroom of A$3.5 billion-A$6.0 billion," MS says. ([email protected]; @dwinningWSJ)

2329 GMT - Xero's bull at Macquarie expects the cloud-accounting software provider to reinvest for growth in fiscal 2026. A note from one of the investment bank's analysts tells clients that they expect the reinvestment to be outlined with guidance provided at this week's annual result. They say that they can already see 140 job ads for roles with the company. They have high conviction in Xero's growth story beyond the next 12 months, and think it is likely to improve traction in the U.S. thanks to changes in product, strategy and management. Macquarie has an outperform rating and A$191.90 target price on the stock, which is at A$172.41 ahead of the open. ([email protected])

2320 GMT - Zip loses a bull at Jefferies on worries that the Australian buy-now-pay-later operator will struggle to grow U.S. user numbers as quickly as analysts forecast. Jefferies analyst Wei Sim lowers his recommendation on the stock to hold, from buy, pointing to weakness in customer retention indicated by the investment bank's survey of U.S. consumers. He tells clients in a note that Zip had the weakest retention outlook of all BNPL services, with new-user intention also below average. He thinks that an average analyst expectation for 28% growth in U.S. users through fiscal 2027 is too high. Jefferies cuts its target price by 51% to A$1.80/share. Shares are at A$1.865 ahead of the open. ([email protected])

2301 GMT - Australia's real-estate sector could benefit from the disruption to global capital flows caused by trade uncertainty. "Strong underlying economic fundamentals, a global underweight position to the REIT sector and a weaker Australian dollar are likely to see a re-direction of capital into Australia," says Macquarie. Already, optimism in capital markets is shown by multiple groups looking to raise into new and existing funds. They include Charter Hall raising for a new convenience retail fund, Mirvac raising for its Wholesale Office Fund and HMC Capital in advanced talks to launch an Urban Retail Fund.([email protected]; @dwinningWSJ)

2244 GMT - Centaurus Metals's Jaguar nickel project in Brazil will attract interest from investors, but funding hurdles remain, reckons Barrenjoey. "The challenge for Centaurus management will be demonstrating the project has economic returns that meet an investor's hurdle rate at current prices," analyst Richard Knights says. Assuming a $7.00/lb nickel price results in a $104 million net present value and a 17% internal rate of return, Barrenjoey says. While that's palatable to investors, the capex-to-net present value ratio is relatively high and that will be a meaningful hurdle to overcome, the bank says. "In our view, the most likely investor at this stage would be a smelting operation that benefits from the high grade concentrate unlocking other, cheaper, lower grade nickel units," Barrenjoey says. It rates Centaurus at overweight. ([email protected]; @dwinningWSJ)

2233 GMT - Domain's $1.9 billion takeover by CoStar could create a short-term overhang on REA Group shares, given the risk of more intense competition in property listings, says Jefferies. Still, analyst Roger Samuel still thinks REA's dominance is unlikely to be disrupted. "As it is pushing Audience Maximiser, which targets buyers across numerous sites online, it would further entrench REA's Number 1 position," Jefferies says. The bank retains a hold call on REA following its 3Q update, while its price target drops by 0.8% to A$246.10/share. REA ended last week at A$244.97. REA is controlled by News Corp, which owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires