0336 GMT - Beach Energy needs new assets to offset declining oil and natural gas production. Could it get them from Santos? Citi ponders the question because the XRG-led consortium bidding for Santos may need to commit to selling some of its assets to get a takeover approved by Australian regulators. Analyst Tom Wallington identifies Santos's undeveloped Narrabri gas deposit as a potential target. "A hypothetical acquisition could extend reserve life meaningfully (to 14 years) and would align with Beach's strategic pivot to sustainable, long-life domestic assets," Citi says. Buying the Narrabri deposit also wouldn't involve Beach breaching gearing limits. Citi has a sell call on Beach, but says sentiment could shift if it addresses risks such as short reserve life with an acquisition. ([email protected]; @dwinningWSJ)

0135 GMT - Aussie Broadband lures a new bull at Macquarie, with the internet provider seen benefiting from industry tailwinds and cross-sell potential. The investment bank initiates coverage of the stock with an outperform rating. Macquarie analysts tell clients in a note that the company's skew toward higher-speed tiers bodes well given the prospect of residential users' churn toward such services. Growth into mobile raises the prospect of cross-selling opportunities, they add. The analysts reckon that Aussie Broadband's balance sheet can also support further acquisitions and capital returns. Macquarie puts a A$5.05 target price on the stock, which is up 0.5% at A$3.93. ([email protected])

0116 GMT - Reece's bears at UBS further lower their growth outlook on the uncertain demand facing the plumbing-parts supplier. The investment bank's analysts reiterate their sell rating on the stock, telling clients in a note that they see continued pressure on the stock from macro conditions in both the U.S. and Australia. They cut their fiscal 2026 Ebit forecast by 19% on Reece's latest trading update, pointing to slower U.S. residential construction, housing affordability and increased competition. UBS lowers its target price 24% to A$13.50. Shares are up 0.2% at A$14.15. ([email protected])

0102 GMT - The challenged competitive position facing Woolworths' Big W and New Zealand food businesses makes the prospect of dramatic action appear difficult, UBS analysts write in a note. They welcome the capital-allocation discipline shown by the retirement of the MyDeal marketplace business and look forward to further outcomes from the Australian supermarket operator's portfolio review. However, they hint that options could be limited at Woolworths' loss-making Big W department stores and its low-return New Zealand supermarkets. UBS has a neutral rating and A$32.00 target price on Woolworths shares, which are down 0.35% at A$31.03. ([email protected])

2254 GMT - Woolworths's decision to close MyDeal doesn't surprise Jefferies. That's because of the challenging economics of marketplaces and Wesfarmers's closure of Catch. Analyst Michael Simotas says the destruction of capital invested into MyDeal clearly isn't positive. Also, the ongoing earnings benefit from closing the operation is modest. Still, Jefferies welcomes the move because it is a step toward simplifying "a very complicated business and it suggests management won't have tolerance for ongoing losses." Jefferies has a hold call on Woolworths and A$29.50/share price target. Woolworths ended last week at A$31.14. ([email protected]; @dwinningWSJ)

2242 GMT - Aurelia Metals keeps a bull in Ord Minnett despite a disappointing outlook. The group signaled zinc production in FY 2026 and FY 2027 would be some 32,000 tons lower than Ord Minnett had expected. Analyst Paul Kaner says initially this looked like it was driven by Aurelia's new Federation mine. In fact, much of the downgrade was driven by the Peak South operation where zinc/lead grades are expected to be lower for the final three years of mining, Ord Minnett says. "Overall, our longer-term investment thesis for Federation and New Cobar remains broadly unchanged (albeit with higher sustaining capex)," Ord Minnett says. "These assets are the key components of our valuation (+90% of net asset value) and not Peak South." ([email protected]; @dwinningWSJ)

2236 GMT - DigiCo Infrastructure REIT's gearing is very high, and its valuation isn't compelling enough given the risks. That's the view of Jefferies, which starts coverage of DigiCo at hold with a A$3.70/share price target. DigiCo's U.S. assets are fully leased to blue-chip customers, providing steady income with rent escalations to fund development projects elsewhere, Jefferies says. "However, DigiCo may face some hurdles in expanding its Sydney facility (SYD1), where leasing activities could be slower than expected," analyst Roger Samuel says. DigiCo ended last week at A$3.42. ([email protected]; @dwinningWSJ)

2219 GMT - Reece gets a new bull in Ord Minnett which expects the plumbing fittings supplier's returns will improve from a cyclical low. Reece forecast FY 2025 Ebit to decline by around 19% to A$553 million, representing the midpoint of its guidance range. "Despite the cyclical downturn in earnings, Reece continues to invest through the cycle, which should ensure it benefits from an eventual uptick in building activity," says analyst James Casey. Ord Minnett upgrades Reece to buy, from accumulate. It expects a modest improvement in construction activity in Australia and New Zealand in FY 2026, before a more pronounced recovery in FY 2027. In the U.S., weakness in new residential construction and increased competition are headwinds. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires