0455 GMT - Collins Foods' bull at Citi sees further signs that the eventual recovery in its Australia business could take longer than expected. Analyst Sam Teeger points to rival fast-food franchiser Restaurant Brands' update, in which it said it expects its local recovery to be gradual, with cost-of-living pressures on consumers easing later in the year. Teeger sees this hinting at possible downside risk to analysts' forecasts for 1.3% 2H same-store sales growth at Collins' KFC Australia restaurants. Citi has a buy rating and A$9.60 target price on the stock, which is down 2.1% at A$7.89. ([email protected])

0426 GMT - Bendigo and Adelaide Bank looks to be on track to meet consensus expectations for its full-year cash profit, but UBS analyst John Storey still has a wary eye on the lender's pre-provision performance. Storey tells clients in a note that Bendigo now needs A$120 million in 4Q cash profit to hit full-year expectations, which he thinks is achievable. However, he warns that Bendigo has work to do if its pre-provision profit is to meet the average analyst forecast. He points out that 3Q pre-provision profit fell 4% on the average of the prior two quarters, and needs to grow by 4.8% in 4Q to meet expectations. UBS has a neutral rating and A$11.00 target price on the stock, which is flat at A$11.77. ([email protected])

0408 GMT - Bendigo & Adelaide Bank's third-quarter update shows margin discipline in the face of lower interest rates and increased competition, Jarden analysts say. They think that the regional Australian lender did well to hold its net interest margin flat on the prior three months, but see compression resuming over coming periods against the backdrop of central-bank rate cuts. Bendigo's headline profit was about 2% stronger than the Jarden analysts had anticipated, which they tell clients in a note was due to benign credit quality. Jarden raises its target price 0.9% to A$11.60 and stays neutral on the stock, which is flat at A$11.77. ([email protected])

0402 GMT - Pallet giant Brambles's U.S. earnings margins could come under pressure from increased lumber prices, Jarden analysts say. They say in a note that lumber costs are reaccelerating at a time when pallet prices are stuck in reverse. Their analysis suggests a 10% on-year rise in lumber costs so far in Brambles' fiscal second half, compared with a 1.8% on-year decline in April for pallet prices. All told, they see broad near-term challenges for Brambles but maintain a neutral rating and its target price of A$19.80 on the stock. Shares are down 0.1% at A$22.13. ([email protected])

0231 GMT - The market will likely expect the successor for Rio Tinto CEO Jakob Stausholm to be an internal candidate, according to Citi analyst Paul McTaggart. He views iron-ore chief Simon Trott and Chief Commercial Officer Bold Baatar, a former copper boss, as the likely front runners. Like other analysts, McTaggart says the succession plan came as a surprise. "We won't speculate as to why Stausholm is leaving earlier than most would have expected," he says in a note. Citi has a neutral rating and A$130.00 target on Rio Tinto, which is down 1.0% at A$117.64.([email protected]; @RhiannonHoyle)

0121 GMT - Australian Agricultural Co.'s discount to the value of its net assets looks excessive to Bell Potter analyst Jonathan Snape. Maintaining a buy rating on the stock, Snape says in a note that the cattle producer has managed six straight years of earnings growth. On top of this, he says that domestic cattle prices have rebounded and remain materially undervalued relative to meat-price indicators. Agricultural land and water asset values look likely to remain robust, he adds. Bell Potter trims its target price 2.6% to A$1.90. Shares are down 2.8% at A$1.41. ([email protected])

0120 GMT - Citi analysts feel a bit more reassured about Bapcor's prospects after hearing more about Wesfarmers' plans for auto-accessory retail. Analysts Sam Teeger and William Park tell clients in a note that they are less cautious about the potential medium-term impact of Wesfarmers' entry into the space through its giant Bunnings hardware chain. They say that Wesfarmers doesn't have any aspirations for its Bunnings stores to offer the specialized range available elsewhere. The Citi analysts say they will keep watching for potential foot-traffic impacts on Bapcor's Autobarn stores. Citi has a neutral rating and A$5.43 target price on Bapcor shares. The stock is up 1.35% at A$5.27. ([email protected])

0011 GMT - TPG Telecom's strong mobile customer growth could come at the expense of average revenue per user, Jefferies analyst Roger Samuel warns. He thinks that April's 40% growth in gross additions probably stems in most part from low-value customers attracted by TPG's recent promotional discount. This suggests that any step-up in net additions could be dilutive to TPG's current postpaid ARPU, he writes in a note. Gross customer additions moderated compared with February, but are still good, he adds. Shares in TPG are up 1.2% at A$5.14. ([email protected])

2350 GMT - Nick Scali gets a new bull at Jefferies on the furniture retailer's leverage to falling interest rates and strong track record. Analyst Michael Simotas initiates coverage with a buy rating, telling clients in a note that the company looks well-positioned for any rate cuts, which should support higher consumer confidence and house prices. He points to a history of long-term compound annual revenue growth of 13% in Australia and New Zealand, and sees evidence that Nick Scali is avoiding some of the mistakes other Australian companies have made when expanding to the U.K. Jefferies puts a A$21.00 target price on the stock, which is at A$18.73 ahead of the open. ([email protected])

2338 GMT - Morgans views recent setbacks at EQ Resources' Mount Carbine tungsten mine in Queensland state as a blip. Production fell by more than 50% in the three months through December due to the availability of process water, according to analyst Chris Brown. Then, seasonal wet weather stymied efforts to bring in consumables, including explosives, from Townsville, and production fell further. "Our expectation is for a return to normal operating conditions for the balance of 2025," says Morgans. "We expect a major turn-around for Mt Carbine, returning to previous mining rates, and benefiting from an increased head grade." Morgans, which rates EQ Resources as a "speculative buy," expects the operation will be cash flow positive. ([email protected]; @dwinningWSJ)

2335 GMT - Car parts retailer ARB is dropped from Ord Minnett's analyst conviction list as profit headwinds stiffen. Analyst James Casey cites lower Australian aftermarket sales among reasons for its removal from the list, as new vehicle sales decline and independent retailers shrink the number of vehicles on their forecourts. Ord Minnett expects ARB's 2H export sales to be hit by a slowdown in new vehicle sales across Europe, particularly in the U.K., while tariffs on automotive parts are likely to affect U.S. operations. Also, ARB faces higher costs from a weaker Australian dollar against the Thai baht. Ord Minnett cuts its earnings forecasts by 5%-10% over the next three years, but retains a buy call on the stock. ([email protected]; @dwinningWSJ)

2332 GMT - Seek's investment in artificial intelligence could be a defensive move by the Australian job advertiser, Jefferies analyst Roger Samuel says. Rather than being a growth driver, AI is seen by Samuel as a must-have given that Seek's rival platforms would have access to the same tools. He tells clients in a note that Seek's advantage instead comes from the data it has accumulated over years of operation. Samuel adds that candidate experience and the value enjoyed by hirers is already improving thanks to the tools. Jefferies raises its target price 13% to A$24.60 and keeps a hold rating on the stock, which is at A$23.56 ahead of the open. ([email protected])

2323 GMT - The delay in ramping up Fortescue's Iron Bridge project to nameplate capacity disappoints Macquarie analysts, who expect little cost relief from the miner pushing out its production target. "FMG carries a large fixed-cost base at Iron Bridge," the analysts say in a note. "Therefore, we assume the volume cuts flow directly to the bottom line." However, they take a positive view on executive changes, which appear to indicate a refreshed focus on the metals business, they say. "One of our criticisms on FMG's 'FFI' strategy has been it's non-adjacency and limited grounds for genuine competitive advantage," say the analysts. "This move further aligns decarbonization and mining, potentially driving efficiency in operational decarbonization and green steel efforts." Macquarie has a "neutral" rating and A$15.00 target on Fortescue, which ended Thursday at A$15.89. ([email protected]; @RhiannonHoyle)

2249 GMT - Wesfarmers is a well-run business with a reasonable growth outlook, but the stock's valuation makes it a risky investment, Barrenjoey analysts say after the company held a strategy briefing for investors. The Barrenjoey analysts say the stock trades at its highest-ever price-to-earnings multiple of 32.5x and premium to market of 77%, plus its lowest-ever dividend yield of 2.7%. They add that the market is too optimistic about Wesfarmers's chemicals, energy and fertilizers business, pointing out their earnings forecast for that unit is 34% below consensus. On the bright side, the analysts say they are confident in their forecasts for the company's main retail businesses. "While investors aren't, by and large, taking earnings risk, they are taking valuation risk, hence we keep underweight," they write in a research note. ([email protected])

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2234 GMT - After attending a Wesfarmers strategy briefing, Jefferies analysts Michael Simotas and Naveed Fazal Bawa aren't so sure about the Aussie conglomerate's recent M&A. They say recent additions, including setting up a lithium business and a health division, have been "suboptimal so far," and they point out the lithium business is now poised to book a greater than expected loss this fiscal year. The Jefferies analysts also say that M&A was downplayed at the briefing, with management appearing to prioritize organic capital allocation. Still, the Jefferies analysts, who have a "hold" rating on Wesfarmers, say that prospects for the company's main businesses, such as retailers Bunnings, Kmart, and Officeworks, remain strong. ([email protected])

1044 GMT - Rio Tinto could recruit a dealmaker as its next CEO, as the conservative approach toward acquisitions of departing boss Jakob Stausholm might have played a role in his exit, AJ Bell's Russ Mould says in a market comment. Mining arch-rival BHP's attempt to buy Anglo American last year raised the question of why Rio Tinto wasn't also pursuing big deals, Mould says. "Rio is running smoothly but its position as a listed business means success will also be judged on its share-price performance. That needs to be fired up, and M&A is the way for Rio to show it is the king of the miners given the industry follows the mantra of 'biggest is best,'" Mould says. Shares are flat at 46.50 pounds.([email protected])

(END) Dow Jones Newswires