0258 GMT - E&P analyst Paul Mason reckons that Melio's new syndication network was probably what elevated it above other bill-payment providers in Xero's eyes. Mason writes in a note that accounting-software provider Xero flagged Melio's partnership with Fiserv while announcing the deal. He thinks that Xero might have a long-term aspiration to get broader distribution of its core accounting product from Fiserv and its Clover subsidiary. The price looks high but makes sense if Xero can generate strategic synergies on distribution, Mason adds. RBC has a last-published neutral rating and A$186.00 target price on the stock, which is in a halt at A$194.21. ([email protected])

0245 GMT - Xero's material acquisition of Melio plugs a gap for U.S. bill payments and makes strategic sense, according to its bull at RBC. Analyst Garry Sherriff tells clients in a note that the move aligns with Xero's aim of expanding its U.S. presence, although bill-payment platform Melio's loss-making status makes it hard to forecast Xero's cash-flow and profitability. He acknowledges that accounting-software provider Xero has a mixed track record on M&A, and warns that it will take time for the intricacies of the deal to become clear. RBC has an outperform rating and A$210.00 target price on the stock, which is in a halt at A$194.21. ([email protected])

0240 GMT - Xero's bull at Citi likes the accounting-software provider's acquisition of Melio for several reasons, including the potential distribution channel it brings. Analyst Siraj Ahmed tells clients in a note that Melio's recently launched syndication offering could accelerate Xero's accounting customer acquisition via banking partners. Shares might initially trade weaker but the acquisition will help Xero scale, he says. Ahmed adds that Xero's guidance for fiscal 2028 revenue to be more than double that of fiscal 2025 implies a 15% upgrade to the average analyst forecast. Citi has a last-published buy rating and A$210.00 target price on the stock, which is in a halt at A$194.21. ([email protected])

0001 GMT - Tech supremacy has become a national security priority, particularly for the U.S. and China, where AI leadership is seen as critical to both economic advantage and military superiority, says BlackRock in a note to clients. Many NATO members are expected to agree to spending up to 5% of GDP on defense after this week's NATO Summit in The Hague, it says. Investors can benefit from exposure to defense, meaning companies and industries directly or indirectly involved in products, services or capabilities supporting a country's defense infrastructure, it says. Such exposure can be a source of portfolio resilience, especially in periods of heightened geopolitical volatility, it adds. ([email protected]; @JamesGlynnWSJ)

2350 GMT - Fast food restaurant operator Collins Foods' decision to give specific net profit guidance this early in its fiscal year is unprecedented. So, Morgans sees it as a strong, positive endorsement by management in the outlook. Collins Foods expects FY 2026 underlying net profit to increase by low-to-mid teens percent compared to FY 2025. Growth of 10%-15% would imply a range of A$56 million-A$59 million, Morgans says. That is in line with consensus forecasts of A$58.3 million. "Collins Foods' track record will likely mean guidance will prove to be conservative," analyst Billy Boulton says. Morgans has a buy call on Collins Foods. ([email protected]; @dwinningWSJ)

2306 GMT - Headwinds to plumbing fittings supplier Reliance Worldwide from a weak U.S. housing market aren't likely to ease any time soon, contends Jefferies. "We see ongoing risk into FY 2026 given deteriorating macroeconomic conditions," analyst Ramoun Lazar says. Jefferies cuts forecasts for volumes in North America as a result. It now expects a 4% miss to consensus forecasts for North American sales in FY 2026. "We continue to prefer Australia, New Zealand exposed housing companies in this environment," says Jefferies. It favors SGH and Fletcher Building in particular. ([email protected]; @dwinningWSJ)

2254 GMT -- Jefferies sees an overlap between Treasury Wines Estates's signal that it will buy back stock and the arrival of Kirin Holdings's Sam Fischer as CEO later this year. Treasury plans to repurchase up to 5% of shares from August. Treasury's leverage is likely to be around 2.0x at the end of June, just within its target range of 1.5-2.0x. So, Jefferies expects Treasury to buy back 3% of stock in FY 2026 and another 2% in FY 2027 to ensure it stays within that range. "Given buyback only just fits within capital management framework, we believe buyback may decrease risk of further earnings rebase when new CEO arrives," analyst Michael Simotas says. ([email protected])

2250 GMT -- The odds are increasing that Collins Foods and its KFC outlets will be successful in Germany, says Citi. Analyst Sam Teeger points to recent hires by Yum! Brands in the market that include a new chief marketing officer with experience at McDonald's and a new head of digital. Citi also notes that Collins Foods is on the four key Yum! Brands committees, which gives it a voice at the table. Meanwhile "the remodeling of stores across the market has been ramping up, which should be positive for the brand and suggests franchisees" are willing to invest, Citi says. It has a buy call on Collins Foods. ([email protected])

2239 GMT - Aurelia Metals needs to show it can control costs after resetting expectations at last week's strategy day. The company provided guidance for FY 2026 operating expenses of A$275 million-A$315 million. That was higher than Jefferies's forecast of A$240 million. Aurelia said the 46% on-year growth in costs was partly driven by the transition of its new Federation mine to commercial output. Also, mining unit costs at its Peak operation remain high. Analyst Daniel Roden says the revised FY 2026-FY 2028 cost base is 23% higher than forecast. So, the bank resets its near-term earnings view. "Execution on cost control will be key to restoring margin traction and delivering Aurelia's A$105 million-A$200 million FY 2028 operating cash flow target," Jefferies says. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires