0350 GMT - KMD Brands loses a bull in Forsyth Barr after its 2H sales were hurt by the weather. KMD Brands said unseasonably warm temperatures in Australia during the first four months of 2H led to Kathmandu sales falling by 6.4%. Sales have picked up in June so far due to colder weather but Forsyth Barr stays cautious. "Unfortunately for KMD, until we see a pickup in general consumer sentiment in Australasia, we expect more weather-driven volatility, which increases the risk around future earnings," says Paul Laxton Koraua. Forsyth Barr drops to neutral, from outperform, and cuts its price target by 36% to NZ$0.34/share. KMD is up 1.8% at NZ$0.28. ([email protected]; @dwinningWSJ)

0257 GMT - Investors should prepare for volatility in coming days and potentially even weeks, OCBC's Vasu Menon says in an email. The managing director of Investment Strategy for Wealth Management Singapore cites ongoing Middle East crisis and President Trump's tariff policy. However, these developments may not end the global stock bull market as long as they don't lead to sharply higher inflation and cause a global recession, Menon says. "What's going for markets is a lot of idle liquidity on the sidelines that could provide market support, should there be sharp pullbacks," he says. "This means that such pullbacks will offer an opportunity to buy/accumulate, rather than a reason run for cover," Menon adds. ([email protected])

0228 GMT - Lynas's first output of separated dysprosium and terbium may be a significant milestone for both the company and the China-dominated market, but sales of heavy rare earths will do little to boost the miner's earnings in the near term, Macquarie analysts say in a note. "Financial benefits may take time due to challenges in achieving required product quality and volume," the analysts say. Investor focus will remain on the ramp-up of Lynas's Kalgoorlie cracking and leaching facility, they add. The analysts believe broader supply concerns could ease as China and the U.S. make progress in trade talks, and heavy rare earths leave Chinese ports. Macquarie downgrades Lynas to underperform from neutral, citing recent price strength. Its target on Lynas remains at A$8.00/share, up 43% year to date, is down 1.1% at A$9.18. ([email protected]; @RhiannonHoyle)

0147 GMT - Markets are likely to eye actions by Iran and Israel this week following the U.S. strikes on Iran's nuclear sites over the weekend, OCBC's Global Markets Research team say in a note. "Iranian retaliatory strikes could take place," the team says, citing a message carried by the official IRNA news agency. Ali Akbar Velayati, an advisor to Iran's supreme leader, stated in the message that "any country in the region or elsewhere that is used by American forces to strike Iran will be considered a legitimate target for our armed forces." ([email protected])

0135 GMT - Citi analyst Thomas Strong stays bearish on Australia's major banks despite the stocks' continued ability to find support at elevated levels. Strong acknowledges that near-term earnings stability could keep the stocks aloft in the near term, but still thinks that a combination of earnings risk and high valuations looks difficult heading into fiscal 2026. He warns clients in a note that history shows that sector rotations can play out quickly. ([email protected])

0102 GMT - REA Group loses its bull at Bell Potter on concern that Australia's largest property advertiser might not have the pricing power to deliver on the market's FY 2026 revenue expectations. Analyst Michael Ardrey lowers his recommendation to hold from buy, flagging risk from a regulatory investigation into price-gouging allegations. With on-year volume growth potentially challenged by a strong year-earlier period, Ardrey sees buy yield per listing as the key growth driver for News Corp-controlled REA. Bell Potter cuts its price target 1.9% to A$262.00. Shares are down 1.2% at A$231.265. News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires. ([email protected])

0046 GMT - Seek's bull at Bell Potter reckons that the Australian job advertiser's local volumes are tracking ahead of expectations. Analyst Michel Ardrey looks at Seek's May ad-index data and concludes that the company's Australian listings volumes are down by 9.9% on-year for the first 11 months of fiscal 2025. This compares with his prior estimate of an 11% decline. Ardrey rolls back recent moderations to his assumptions related to tariff-driven uncertainty, telling clients in a note that he is lifting his EPS forecasts. Bell Potter lifts its target price by 10% to A$28.40 and keeps a buy rating on the stock, which is down 1.0% at A$23.745. ([email protected])

0036 GMT - Aurelia Metals is likely to reach an inflection point for positive free cash flow in FY 2028, says Macquarie. That is 12 months later than the bank had originally assumed. It comes after Aurelia's investor day highlighted higher-than-expected operating costs and weaker by-products over the next two years. Still, gold production is set to increase during that time frame. "We cut our target price by 22% to A$0.25 due to earnings and valuation downgrades," Macquarie says. It retains an outperform call on the stock. Aurelia is down 1.2% to 20.25 Australian cents. ([email protected]; @dwinningWSJ)

0031 GMT - Lendlease is making progress with asset sales but needs more deals to crack on with buying back stock, says Citi. Lendlease has completed the sale of Capella Capital to Japan's Sojitz. That locks in A$70 million of profits in FY 2025. And it comes after Lendlease sold its Military Housing business and reshaped its U.K. development joint venture. Still, analyst Suraj Nebhani thinks Lendlease needs to sell its Australian retirement-living business and its TRX retail development in Malaysia before getting more aggressive with capital management. "We see the announcement of a buyback as a near term catalyst upon successful sale of certain assets," says Citi, which has a buy call on Lendlease. ([email protected]; @dwinningWSJ)

0031 GMT - Australia's Treasury Wine Estates might find it tough to achieve earnings guidance for sales of its Penfolds brand in China, Citi analyst Sam Teeger warns. He writes in a note that Treasury faces risks from ongoing consumer weakness, changing consumption habits, and the rising popularity of Chinese wines. While Penfolds' brand is still strong in China, Teeger is concerned that sales to retailers could be outpacing retailers' sales to consumers. Teeger recommends The a2 Milk Company as an alternative stock for investors seeking exposure to China's consumers. Citi has a neutral rating and A$8.68 target price on Treasury Wine, which is down 1.2% at A$8.115. ([email protected])

0025 GMT - The outlook for CSL's vaccines business has turned a little less rosy. CSL's U.S. flu vaccine business makes up 8% of group revenue and 10% of group earnings. Bell Potter pares revenue growth forecasts for CSL's Seqirus unit following a wave of vaccine-related regulatory leadership changes in the U.S. Those changes include the recent overhaul of the CDC's vaccine advisory panel. "To be clear, we don't expect these regulatory changes to narrow CDC flu recommendations given their well-established safety record," says analyst Thomas Wakim. Still, it expects negative sentiment in the U.S. to persist in upcoming seasons. ([email protected]; @dwinningWSJ)

2343 GMT - Temple & Webster's new bears at Jefferies wonder whether the Australian furniture retailer has a large enough competitive moat to withstand intensifying competition. Initiating coverage of the stock with an underperform rating, Jefferies' analysts tell clients in a note that competition is ramping up just as the stock's valuation metrics are at their most demanding. They see potential danger from rival domestic vertical resellers and, over time, from others including global tech giants. The analysts add that Temple & Webster has enjoyed first-mover advantage and has built well, but think that growth in home-improvement may be harder to come by. Jefferies puts a A$17.00 target price on the stock, which is at A$21.35 ahead of the open. ([email protected])

(END) Dow Jones Newswires