0219 GMT - Morgan Stanley's new global data-center model supports its analysts' bullish stance on Australia's NextDC. The model projects annual data-center capacity growth of 23% to 2030, supported by demand from U.S. tech giants. For Australia, this signals a compound annual growth rate of 18% over the period. The MS analysts tell clients that NextDC's land bank gives it room to respond. Its land bank would cost A$15 billion-A$20 billion to build what MS sees as 1GW of capacity, with a forecasted return of 12%. That's well above NextDC's 7.7% cost of capital, and its internal assumptions. MS maintains its overweight rating and A$20.10 target price on the stock, which is up 3.3% at A$14.74. ([email protected])

0206 GMT - Temple & Webster's bulls at Morgan Stanley think shareholders will have to wait a little longer for operating leverage to emerge at the online furniture retailer. MS analysts write in a note that the ASX-listed operator might opt to reinvest the proceeds of what should be strong fiscal 2026 sales into securing further top-line growth. They expect Temple & Webster to report 22% sales growth for fiscal 2025 and a similarly strong start to its new fiscal year. The analysts see a likely benefit from lower interest and shipping rates but still expect proactive reinvestment, such as in marketing. MS has an overweight rating and a A$28.00 target price on the stock, which is up 0.5% at A$24.73. ([email protected])

0156 GMT - With Anglo American's market cap slipping toward the level it was when BHP last year made a takeover offer, investors are asking whether the mining giant could make another run at its rival, HSBC analysts Shilan Modi and Jonathan Brandt say in a note. The analysts say that Anglo still appears relatively expensive versus BHP's last offer after accounting for recent asset sales. That "may prevent a renewed bid in the near term, if any," they say. Although, everything "could change should Anglo's simplification strategy derail." BHP is up 0.9% at A$39.96/share.([email protected]; @RhiannonHoyle)

0116 GMT - Shares of Australia's Lynas Rare Earths and Iluka Resources appear to be getting a boost from a media report that Australia is considering setting a price floor for rare earths. The Australian government flagged plans for a critical minerals reserve earlier this year. Australian officials intend to strike supply deals with producers of rare earths and some other critical minerals, the report says. The U.S. recently agreed to a price floor for rare earths in a deal with MP Materials. Lynas, the biggest supplier of separated rare earths outside of China, is up 5.8% at A$11.90/share. Iluka, which is branching out into rare earths with a new refinery, is up 7.6% at A$5.725/share. Other critical minerals producers are also gaining, while Australian stocks are mostly higher across the board. ([email protected]; @RhiannonHoyle)

0058 GMT - Electro Optic Systems' latest order is a defining moment for the defense equipment maker and the commercialization of High Energy Laser technology on the battlefield, Ord Minnett says. EOS today said it has secured a A$125 million order to supply a 100-kilowatt High Energy Laser Weapon to a European NATO member state. The HELW aims to defend against drones and drone swam attacks. "The groundbreaking contract win not only improves EOS's credentials globally as a supplier of High Energy Laser technology but also raises our conviction in the company converting the A$1.3 billion-A$1.5 billion opportunity pipeline into contracted revenue," analyst John Lawlor says. EOS shares surge 30% to A$3.84 on the contract news, having touched a record-high A$4.04 earlier in the session. ([email protected]; @dwinningWSJ)

0030 GMT - ResMed keeps its bull at Macquarie on what the investment banks' analysts see at positive medium-term demand catalysts and the likelihood of sustained near-term margin expansion. Maintaining an outperform rating on the stock, the Macquarie analysts write in a note that the breathing-tech manufacturer's 4Q margin was stronger than they had anticipated. They attribute the beat to operational efficiencies, including in procurement, manufacturing, and logistics. With capital returns accelerating and awareness of sleep apnea rising, Macquarie lifts its target price on the stock by 5.9% to A$48.60. Shares are up 4.6% at A$44.88. ([email protected])

0021 GMT - WiseTech Global's bull at Citi warns that the logistics-software provider may have to wait a little longer for any volume uplift related to DSV's acquisition of rival shipper DB Schenker. Analyst Siraj Ahmed points out that DSV management have flagged their intention to keep using DB Schenker's in-house tech platform for some time while evaluating it. This means that any volume benefit from DSV moving DB Schenker onto the WiseTech-operated platform it uses elsewhere is probably pushed back, he tells clients in a note. Potential churn remains a possibility, but Ahmed thinks DSV will stay on WiseTech's CargoWise platform. Citi has a buy rating and A$127.40 target price on the stock, which is up 1.5% at A$116.00. ([email protected])

2312 GMT - The sudden departure of Endeavour Executive Chairman Ari Mervis surprises and concerns Citi. That's because it creates more instability for the drinks-and-hotels group in a challenging retail liquor market. "Further, we think his skillset and industry experience (ex-Accolade, SABMiller) would have been valuable in a nonexecutive role, once the new CEO commences in 2026," analyst Sam Teeger says. It finds it hard to be positive about Endeavour's stock as governance questions remain. "There lacks a clear leader in the business who can sign off things," Citi says. Kate Beattie will only be interim CEO for five months and incoming CEO Jayne Hrdlicka is not involved with board discussions at this stage, the bank says. Citi has a hold call on Endeavour. ([email protected])

2304 GMT - Is the market underestimating the capex intensity required to sustain Beach Energy's production beyond FY 2026, particularly across Australia's Cooper Basin? Citi thinks so and this helps to cement its sell call on Beach's stock. Beach is preparing to bring online the second stage of its Waitsia gas project in Western Australia. Analyst Tom Wallington expects Waitsia volumes will lift production growth to a peak of 22.9 million BOE in FY 2027. Production is then likely to fall, driven by field declines in the Otway and Cooper basins, Citi says. "M&A is required to add meaningful portfolio length and improve the current 7 year 2P reserve life," Citi says, referring to Beach's proven and probable reserves. "Funding of this hinges on the scale of any acquisition with Beach having A$700 million of headroom at end FY 2025." ([email protected])

2301 GMT - Beach Energy's guidance points to negative free cash flow in FY 2026, says Morgans. Beach signaled annual output of 19.7 million-22.0 million barrels of oil equivalent, capex of A$675 million-A$775 million, and abandonment expenses of A$200 million-A$250 million. That was disappointing, analyst Adrian Prendergast says. He notes that consensus production forecasts were for 23.3 million BOE. Morgans retains a hold call on Beach, and cuts its price target by 14% to A$1.16/share. Beach ended Monday at A$1.18. ([email protected])

2219 GMT - The risk that drinks-and-hotels group Endeavour will need to reset margins remains elevated, Jefferies says. Endeavour is undergoing significant change at the top with new CEO Jayne Hrdlicka set to join on Jan. 1 and executive chairman Ari Mervis resigning this week, citing disagreements with the board. That is stoking speculation about what the company's strategy will look like going forward. Analyst Michael Simotas suggests rebasing margins, while not currently part of the company's thinking, may happen in time. "The risk is elevated given Endeavour needs to address market share loss and category weakness in retail liquor," he says. Jefferies retains a hold call and A$4.40/share price target on Endeavour, which ended Monday at A$4.16. ([email protected])

(END) Dow Jones Newswires