0118 GMT - Collins Foods' bulls at UBS see potential upside to their fiscal 2026 forecasts after the Australian fast-food franchiser's better-than-expected annual result. Analysts tell clients in a note that Collins' KFC Europe business held up better than feared over the second half of the last fiscal year. Australia earnings margins also turned around on lower costs and productivity improvements. The fact that this happened largely in the final fiscal quarter raises optimism on momentum into the new year, which features opportunities for upside including currency moves and depreciation/amortization costs. UBS lifts its target price by 6.0% to A$9.75 and maintains a buy rating. Shares are up 0.65% at A$9.28. ([email protected])

0113 GMT - Treasury Wine Estates looks far too cheap to its bull at Morgans despite the industry and macro headwinds facing the Australian producer. Analyst Belinda Moore tells clients that the vintner is in what she calls deep value territory, with the stock trading at just 12.6 times fiscal 2026 normalized earnings. Against a backdrop of concerns including the health of the U.S. and China economies, Moore says that the stock is missing a near-term catalyst to re-rate. She reckons that the company needs to end its recent cycle of earnings downgrades in order to restore confidence in its outlook. Morgans cuts its target price 7.3% to A$10.25 and keeps a buy rating on the stock, which is down 2.0% at A$7.68. ([email protected])

0036 GMT - Xero's acquisition of bill-pay provider Melio further lifts confidence at Wilsons in the strength of the accounting-software provider's product. The broker's analysts tell clients in a note that the US$2.5 billion acquisition will accelerate Xero's U.S. expansion, and add scale and capability across the whole business. They make no changes to their forecasts because the deal has not closed, but increase their FY 2026 sales multiple to reflect increased confidence in Xero's offering. They value Xero at 14.5 times sales. They acknowledge that this represents a significant premium to rival Intuit, but say Xero's growth warrants it. Wilsons raises its target price 1.7% to A$217.26 and stays overweight. Shares are down 7.7% at A$179.33. ([email protected])

0032 GMT - Amcor appears to be examining potential asset sales as it integrates Berry, prompting Macquarie to assess what that might involve. It thinks Amcor could look within its Rigid Packaging division for assets to sell. "Rigids has underperformed Flexibles for a number of years (North America Beverages in particular), has lower margins and more concentrated customer base," Macquarie says. Beverage demand is more discretionary than for other products. Also, Macquarie notes that Berry had already sold some assets, including spinning off most of its Health, Hygiene & Specialties business before the deal with Amcor completed. "We think there is further potential 'pruning' in industrial/agriculture areas," Macquarie says. ([email protected]; @dwinningWSJ)

0027 GMT - Xero's acquisition of Melio shores up the accounting-software provider's growth story for the next 5-10 years, Macquarie analysts say in a note. They tell clients that the purchase of the bill-pay platform for an initial US$2.5 billion improves Xero's ability to grow in the U.S., which represents the Australia-listed company's largest addressable market. The Macquarie analysts believe that Melio's relatively low subscriber count is less important than its scalability. The product appears to be under-monetized in an effort to drive volume growth, they add. Macquarie keeps an outperform rating and A$204.00 target price on the stock, which is down 7.4% at A$179.81. ([email protected])

0024 GMT - Astral Resources stands out as a takeover target for bigger gold miners, contends Euroz Hartleys. Analyst Kyle De Souza says Astral is one of four ASX-listed developers that could produce 100,000 oz of gold annually. "Mandilla has the largest reserve (by tonnage) for a junior development asset in Western Australia," Euroz Hartleys says, referring to the name of Astral's project. Euroz Hartleys highlights Gold Fields as one company that could be interested in Astral. Gold Fields recently entered into an exclusivity agreement with Lunnon Metals for 18,000 oz of gold located some 7 kilometers, or 4.3 miles, away from its St Ives processing plant. "Yes, 1/100th the ore that Astral has just 22 kilometers away)," Euroz Hartleys says. ([email protected]; @dwinningWSJ)

0015 GMT - Xero's bulls at UBS see strong strategic alignment in the accounting-software provider's first major U.S. acquisition. Analysts at the investment bank tell clients in a note that the purchase of bill-pay platform Melio for an up-front US$2.5 billion simultaneously increases Xero's North American presence through payments and syndicated accounting. They flag Xero's observation that self-employed or micro enterprises often require a payments method before they adopt an accounting solution. Melio looks like a way of driving more cross-sell opportunities, they add. UBS keeps a buy rating and A$215.00 target price on the stock, which is down 7.8% at A$178.90 following a capital raise. ([email protected])

0007 GMT - The largest order in DroneShield's history leads Bell Potter to raise its earnings forecasts. DroneShield has secured a package of three contracts to provide handheld detection and counter-drone systems to a European military customer. The contracts are valued at A$61.6 million. "DroneShield's ability to rapidly fulfil a contract of this size is a key competitive advantage in the defense sector and a reflection of the company's significant inventory investment over the last 18 months," analyst Daniel Laing says. Bell Potter lauds the increasing scale and frequency of DroneShield's contracts. Its bullish view of DroneShield's stock also reflects industry tailwinds, specifically global commitments to increased military expenditure. Bell Potter raises its 2025 EPS forecast by 21%, with upgrades of 34% and 37% in 2026 and 2027, respectively.([email protected]; @dwinningWSJ)

0005 GMT - Aurizon's trading update is soft but not unexpected, says Citi analyst Samuel Seow. Aurizon's FY25 underlying Ebitda estimate of roughly A$1.575 billion compares with the Visible Alpha-compiled consensus of A$1.611 billion. The miss reflects lower network volumes and Bulk contract receivables, says Seow in a note. Depreciation and interest are also slightly higher than analysts envisaged. "Looking forward, Network miss will likely be looked through given regulatory recovery mechanisms in future years," Seow says. "However, Bulk business looks set for a change, with current CFO George Lippiatt switching to lead the under-performing business, replacing Anna Dartnell who has led Bulk since 2023." Citi has a neutral rating and A$3.40 target on Aurizon. The stock is down 1.3% at A$2.96. ([email protected]; @RhiannonHoyle)

0002 GMT - The looming change of Paragon Care CEO likely isn't a precursor to a change of ownership or a sell-down by either of its major shareholders, Bell Potter says. Paragon says Carmen Riley will become CEO on July 1. She will replace David Collins, who will remain on the board as managing director until June next year. "We expect the company will be run in much the same fashion as witnessed over the last year with strong cost control remaining a cornerstone of expected earnings growth," analyst John Hester says. Bell Potter has a buy call on Paragon Care. ([email protected]; @dwinningWSJ)

2339 GMT - Greatland Resources is developing what could be one of the best greenfield gold mines in a decade at its Havieron deposit, says Citi analyst Kate McCutcheon. Citi initiates coverage on the stock with a neutral rating and A$8.00 target for ASX-listed shares. The bank targets GBP3.85/share for Greatland's AIM listing. "The prize is Havieron with expected first-quartile costs and 20-year-plus mine life," McCutcheon says in a note. Havieron can be funded by cash from Greatland's Telfer operation, acquired last year, she says. "That said, West Dome Underground has delivered some of the best intercepts on the ASX this year," McCutcheon says of a new potential mining area at Telfer. Greatland ended Wednesday at A$7.20. ([email protected]; @RhiannonHoyle)

2313 GMT - The value to Xero in acquiring Melio appears to be in the bill-pay platform's syndication network, Jefferies analyst Roger Samuel reckons. He thinks that the Australia-listed accounting-software provider is looking at Melio's syndication network, though which it could eventually provide embedded accounting services. Melio's network includes Fiserv, an investor in the business that Samuel points out provides core accounting processing to institutions servicing 18 million small-to-medium sized enterprises. He understands why Xero is paying such a steep revenue multiple but tells clients in a note that Melio will be earnings dilutive until at least fiscal 2028. Jefferies cuts its target price 9.2%, to A$176.90. Shares were at A$194.21 ahead of the open. ([email protected])

2303 GMT - BlueScope's earnings outlook has improved thanks to higher U.S. steel-price forecasts, Citi analyst Paul McTaggart says. "But we're not chasing the share price as we see PEs [price-to-earnings] compressing," he says in a note. Citi pares its target on BlueScope to A$25.00/share from A$26.50 previously. "While U.S. tariffs are enabling higher U.S. steel prices, there is a question on both duration and efficacy," says McTaggart. He reckons rising steel exports to the U.S. and higher domestic supply will limit what sort of multiple BlueScope investors are willing to pay for U.S. steel earnings. BlueScope, up 20% year to date, ended Wednesday at A$22.44. ([email protected]; @RhiannonHoyle)

2236 GMT - ARB's newest bull is betting on a more confident consumer in Australia and the U.S. Jefferies upgrades the car-parts supplier to buy from hold, noting that sales of 4x4 parts and accessories returned to growth in Australia in 2H. "With the rate-cut cycle underway, ongoing solid 4x4 sales in both countries, and a ray of Middle East geopolitical hope, we now see a pick-up in discretionary spending looming just as ARB's been de-rated," analyst John Campbell says. ARB's share price has fallen some 35% to A$30.97 since the start of October. Jefferies lifts its price target by 4.3% to A$36.00/share. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires