0230 GMT - Web Travel's reinvestment in direct contracting should incrementally increase confidence in the Australian travel booker's take rates, Citi analyst Samuel Seow reckons. He tells clients in a note that the spending is likely to improve the quality of the business. Seow sees Web Travel's fiscal 2025 result as broadly in line with his expectations, and its outlook as positive. Citi has a last-published neutral rating and a A$5.50 target price on the stock, which is down 1.5% at A$5.18. ([email protected])

0220 GMT - Australian lenders could face further competitive pressure in the New Zealand mortgage market from state-owned Kiwibank, Macquarie analysts suggest. They tell clients in a note that the New Zealand government is looking to allocate more capital to the local lender, which could increase pressure on ANZ, Commonwealth Bank, NAB and Westpac. Kiwibank has an 8% share of the New Zealand mortgage market, smaller than all four of the Australian banks. They add that NAB has picked up a slight amount of share of mortgages at the expense of ANZ and Commonwealth, but still holds the smallest share among the Australian banks. ([email protected])

0210 GMT - Myer's bulls at Morgan Stanley see signs that the Australian retailer's synergy targets are tracking ahead of expectations. The department-store operator appears to have firmed its timetable to achieve A$30 million in synergies following the recent acquisition of its apparel brands business from Premier Investments. The MS analysts tell clients in a note that Myer now expects to achieve its target by the end of fiscal 2026, having previously flagged the short-to-medium term. They think that execution risk remains high, but are positive that Myer is clear on what it needs to do and has the management to do it. MS keeps an overweight rating and A$1.05 target price on the stock, which is up 0.7% at A$0.725. ([email protected])

0143 GMT - Well received by the market and most analysts, Web Travel's annual result and outlook have little impact on its bears at Morgan Stanley. They warn that while the Australian travel booker's momentum is accelerating following a better-than-feared FY 2025, there are good reasons to remain cautious. The MS analysts write in a note that booking operators' take rates are trending lower globally, and say that Web Travel is up against larger rivals that are more vertically integrated and more profitable. They keep an underweight recommendation on the stock and have high conviction in their bearish thesis. Its target price rises 25% to A$4.25. Shares are down 0.6% at A$5.23. ([email protected])

0124 GMT - Telstra's attractive defensive characteristics and improved earnings outlook aren't enough to turn Bell Potter analyst Chris Savage bullish on the Australian telecom provider. He upgrades his underlying Ebitda forecasts by 1% for fiscal 2026 and 2% for fiscal 2027 on the targets and outlook provided at Telstra's strategy day. The improvements are largely driven by increases in mobile revenue and margin forecasts, he adds. A better-than-expected cash earnings growth outlook moves Savage to reduce the price-to-earnings ratio discount he applies to his valuation, helping support a 6.9% rise in target price to A$4.65. Bell Potter keeps a hold rating on the stock, which is up 1.05% at A$4.79. ([email protected])

2347 GMT - The overhauled loyalty program at Super Retail Group's auto-accessory stores has potential to better drive sales, according to its bull at Citi. Analyst Adrian Lemme tells clients in a note that the program is more in-line with the equivalent offering at Super Retail's sportswear stores. At worst, the changes should be neutral for gross margins since Super Retail is only modifying an existing program rather than setting up a new one. Lemme says he is becoming more positive on the stock. Citi keeps a buy rating and A$16.50 target price. Shares are at A$14.11 ahead of the open. ([email protected])

2327 GMT -- Web Travel gets a new bull at Macquarie on factors including stabilization in the Australian travel booker's revenue margin. Macquarie analysts raise their recommendation on the stock to outperform from neutral, telling clients in a note that they see the 6.5% medium-term revenue margin expected by Web Travel as a likely floor. They think that any drag from faster growth in total transaction value across lower-margin regions should be offset by management's optimization of supply and customer mix. Revised earnings-margin ambitions for its hotel-booking platform also look more realistic, they add. Macquarie lifts its target price 28% to A$6.19. Shares are at A$5.26 ahead of the open. ([email protected])

2258 GMT -- Macquarie thinks Australian car dealership Eagers Automotive's elevated trading multiple may be short-lived. Eagers's valuation has grown since February, with its share price at an implied 20x near-term earnings. That's above its pre-pandemic average of 18x. Macquarie thinks the expanding multiple reflects a widening premium to peers, expected M&A, no direct tariff exposure, and likely interest-rate cuts. "As Eagers executes M&A, its multiple should decline back toward its five-year pre-pandemic average," says Macquarie, which has an outperform call on Eagers's stock. ([email protected]; @dwinningWSJ)

2245 GMT -- Whilst the latest update from Australian car dealership Eagers Automotive is incrementally positive, it still isn't as strong as the market had expected. Eagers now expects underlying pretax profit in 1H to be marginally ahead of a year ago. That compares to prior guidance for an on-year decline. Analyst John Campbell says consensus expectations are for 9% growth in 1H underlying pretax profit. Jefferies this month downgraded Eagers to underperform, given its big premium to other global car dealers. "We think the stock is more than pricing in BYD upside, but little of the risks," says Jefferies, referring to Eagers's distribution agreement with the Chinese electric vehicle maker. ([email protected])

(END) Dow Jones Newswires