0458 GMT - Technology One's elevated multiple leaves the enterprise software provider with little margin for error, Macquarie analysts warn clients. They like the Australian company's pipeline strength across multiple verticals as well as its geographic spread, but they write in a note that the stock is trading at 78 times earnings on a next 12-month basis. Without a negative catalyst, they think the stock could continue to run but warn that the upside to the current pipeline looks to be priced in. Macquarie raises its target price by 11% to A$34.40 and stays neutral on the stock, which is up 5.1% at A$38.62. ([email protected])

0452 GMT - Telstra's latest price rises will offset slowing customer growth over the next two years, according to its bull at Goldman Sachs. Analyst Kane Hannan tells clients in a note that the Australian telecommunications provider's postpaid mobile price hikes should help drive growth in average revenue per user of 2% in fiscal 2025 and 4% in fiscal 2026. EPS forecasts for fiscal 2026 and fiscal 2027 rise by 3.4% and 3.8%, respectively. GS increases its target price by 9% to A$4.90 and keeps a buy rating on the stock. Shares are up 0.4% at A$4.68. ([email protected])

0449 GMT - It seems likely a deal for Peabody to buy Anglo American's steelmaking coal assets will be renegotiated, according to Jefferies analyst Christopher LaFemina. In a note, LaFemina says Anglo appears not to have acknowledged Peabody's material adverse change claim in the 10-day response period. Renegotiation, arbitration, or the deal closing in its initially agreed form are all possible, he says. "We believe a renegotiated deal structure with a greater portion of the deal being deferred could be a win-win scenario, whereas arbitration is a potential lose-lose on a relative basis," says LaFemina. The up-to $3.78 billion deal has come under scrutiny after a recent fire at one of the Australian mines Anglo American intends to sell. Jefferies has buy ratings on both stocks. ([email protected]; @RhiannonHoyle)

0442 GMT - Telstra's bulls at Jarden see a chance that the telecommunication provider's latest mobile price rises could support a larger-than-expected dividend. Analysts Liam Robertson and Tom Beadle acknowledge that valuation looks stretched at 24.5 times their fiscal 2025 earnings forecast, but tell clients in a note that Telstra's postpaid price rises are both larger and sooner than anticipated. They don't think that the market is adequately pricing in the potential for capital management and think that there is upside risk to consensus expectations for A$0.20 in fiscal 2026 dividends. Jarden lifts its target price 3.4% to A$4.60 and keeps an overweight rating on the stock, which is up 0.4% at A$4.68. ([email protected])

0314 GMT - China's annual steel output growth has flattened, a bearish signal for iron-ore prices. In a note, Commonwealth Bank of Australia analyst Vivek Dhar says growth has slowed markedly from a 4.6% expansion in March, leaving Chinese steel production up only 0.4% from a year earlier for the first four months of 2025. CBA expects China's steel output to contract by roughly 2% this year, pushing iron ore's price down to US$95/metric ton in 4Q, says Dhar. The steelmaking ingredient could remain around US$100/ton if demand for steel outside of China holds up better than expected, or if Beijing commits to significant infrastructure-related stimulus in 2H, he says. Spot iron ore fell by 0.3% Tuesday to US$100.10/ton. ([email protected]; @RhiannonHoyle)

0211 GMT - Rio Tinto's joint venture with Codelco to develop a lithium project in Chile's Salar de Maricunga is in line with the miner's growth and value-creation strategy, and shouldn't be too much of a surprise to the market, say Goldman Sachs analysts Paul Young and Chris Bulgin. In a note, the analysts say Rio Tinto's management had previously been complimentary of the merits of the Maricunga project. "Rio is taking the view of consolidating the best brines in the lithium triangle, Corporacion Nacional del Cobre de Chile with first mover advantage in a breakthrough DLE [direct lithium extraction] technology," say Young and Bulgin. GS has a buy rating and a A$140.80/share target on Rio Tinto. The stock is up 0.8% at A$120.15. ([email protected]; @RhiannonHoyle)

0056 GMT - Building materials supplier James Hardie Industries' debt caught the eye of Barrenjoey analyst Brook Campbell-Crawford. James Hardie's net debt at the end of March was some US$80 million higher than consensus expectations, Barrenjoey says. That's important because James Hardie is levering up to acquire U.S. rival AZEK in a cash-and-stock deal, worth US$8.75 billion when it was announced in March. AZEK shareholders are expected to own about 26% of the combined company. Barrenjoey has a neutral call and A$41.00/share price target on James Hardie, which is down by 4.8% at A$36.64.([email protected]; @dwinningWSJ)

0041 GMT - Regis Resources may be able to keep its Duketon gold-mining operation running for longer, contends Macquarie. Regis raised its mineral resource assessment for the Duketon open pit by 979,000 oz and its Duketon underground mine by 110,000 oz. "Following the resource and reserve lift at Duketon we extend the asset life by an average of 3 years for the open pit and underground operations," Macquarie says. "This sees production improvements from FY 2029 out to FY 2032 of 100,000 oz per annum." The extension to Duketon's mine life drives a 7% rise in Macquarie's price target on Regis to A$4.60/share. Regis is up 4.6% at A$4.76/share. ([email protected]; @dwinningWSJ)

0033 GMT - OFX loses its bull at Wilsons on what the Australian brokers say was a disappointing update by the foreign-exchange provider. The analysts lower their recommendation to market-weight from overweight, citing a combination of accelerated investment and the delayed migration of its Australian back book. They tell clients in a note that the material share-price drop that followed the update captures most of the uncertainty facing OFX, but they are waiting for the 'storm clouds' to pass before becoming positive on the stock. Wilsons cuts the stock's target price by 52% to A$0.94. Shares are down 4.4% at A$0.8225. ([email protected])

0017 GMT - ANZ's institutional bank has peaked and its earnings are set to decline by 15% over the two years through fiscal 2026, Morgan Stanley analysts tell clients in a note. They see lower interest rates, increased competition and modest volume growth among the factors constraining the unit's performance, and expect its return on equity to fall to 12% in fiscal 2026, from 14% in the last full fiscal year. The MS analysts point out that the institutional unit accounts for about 40% of ANZ's group profit, and see limited potential for the stock to re-rate. MS trims its target price by 3.6% to A$26.50 and stays equal-weight on the stock, which is up 1.1% at A$29.07. ([email protected])

2331 GMT - Worley's project bookings appear resilient against a volatile market backdrop, according to UBS analysts Nathan Reilly and Will Wilson. At an investor day, "Worley acknowledged the uncertain outlook and how customers were responding, with well capitalized customers pressing ahead, and no material project cancellations or deferrals," the analysts say. Its 3Q data--which includes a 2.4% rise in backlog on-quarter--supports that view. The analysts say Worley's recent share-price weakness is consistent with global energy services companies, buffeted by tariff risks. They reiterate a "buy" rating, noting the stock trades at a one-year forward price/earnings ratio of 16x, "well below the 24x the stock traded at during the early stages of the last energy capex cycle." UBS has a A$22.00 target on Worley. The stock ended Tuesday up 0.3%, at A$12.95. ([email protected]; @RhiannonHoyle)

2323 GMT - Ramelius Resource's takeover of Spartan Resources could attract a new cohort of investors and give its trading multiple a lift, suggests Ord Minnett. Ramelius is likely to complete the acquisition in July or August, and it could lift the enlarged company into the ASX 100 index later this year. Analyst Paul Kaner says the market usually pays a premium for good management teams and scale. Ord Minnett notes that Northern Star and Evolution Mining trade at 1.8 times price-to-net asset value versus peers at 1x. "Whist these factors might be qualitative, and therefore difficult to factor in, they are no less real and, in our view, should see the company begin to trade at higher multiples versus smaller cap peers," Ord Minnett says. It rates Ramelius a "buy." ([email protected]; @dwinningWSJ)

2308 GMT - James Hardie Industries' updated FY 2026 outlook catches RBC Capital Markets a little off guard. James Hardie is planning for market volumes in North America to contract in FY 2026, including a fourth consecutive year of declines in large-ticket repair & remodel activity. North America represents around three-quarters of James Hardie's net sales. "We view its comments on R&R markets being worse than new construction as somewhat surprising," analyst Matthew McKellar says. RBC expects a mid-single digit decline in single-family starts in 2025. It also projects slight growth in repair & remodel activity. "Although we appreciate there could be additional pressure on large-ticket R&R in an uncertain macro environment," RBC says. It has a "neutral" call on James Hardie. ([email protected]; @dwinningWSJ)

2300 GMT - Software supplier Technology One has significant firepower for M&A, and Barrenjoey thinks the U.K. is a top target. Analyst Josh Kannourakis reckons Technology One will have some A$300 million of cash at the end of FY 2025. "We believe Property and Rating (known as Revenue and Benefits in the U.K.) will be a key focus for M&A given the market is shared between three main players (NEC, Civica and CapitaOne)," Barrenjoey says. It notes CapitaOne, which includes a Revenue and Benefits product among other housing-related software, was recently sold to MRI Software Systems for 200 million British pounds, representing a multiple of 10x Ebitda. Barrenjoey upgrades Technology One to "neutral," from "underweight," following its 1H result. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires