0257 GMT - Downer EDI is doing well improving its margins, says Macquarie, as it upgrades the stock to outperform from neutral. Downer reported a 4.4% Ebita margin in FY 2025, its strongest margin in more than a decade and above management's target of 4.2%. Macquarie reckons Downer can get that to 4.8% in FY 2026. The bank expects margins will continue to widen, reaching 5.3% in FY 2028. Near-term catalysts for its share price include potential defense estate contract renewals and power contract wins, Macquarie says. The bank reiterates a target of A$7.65/share. Downer is up 1.4% at A$6.995. ([email protected]; @RhiannonHoyle)

0152 GMT - Orica's trading update appears to be a net negative, according to RBC Capital Markets. Still, it is "not sufficient to derail our Outperform view," RBC says in a note. The broker says a rise in litigation costs is unfortunate but understandable. "We accept the decision to take these as significant items during the period," the broker says. The update also provides useful qualitative commentary "for a business that is becoming increasingly challenging to model," it says. While blasting solutions volumes in Asia Pacific and North America appear softer than envisaged, margins may have improved thanks to a better mix of products and services, the broker says. RBC has a A$23.00 target on Orica. The stock is up 0.9% at A$20.94. ([email protected]; @RhiannonHoyle)

0139 GMT - The rally in gold prices to all-time highs prompts Morgans to lift its target on Australian miner Regis Resources. The broker raises its price target on the stock to A$5.80 from A$5.00 after baking in higher metal prices. It reiterates an accumulate rating. "Spot case forecasts have been revised to reflect the material increase in the gold price, with our scenario now set at US$3,250/oz," from US$3,000/oz previously, Morgans analyst Ross Bennett says. Bennett adds that he sees "value in producers leveraged to earnings rather than growth." Regis is up 5.2% at A$5.07. Its shares are up 99% year to date. ([email protected]; @RhiannonHoyle)

0125 GMT - Orica's projection of more earnings growth across all its business units is encouraging, according to Citi analyst William Park. Orica's trading update exudes optimism and is "testament to ORI's unwavering focus on commercial discipline," Park says in a note. He expects Orica's specialty mining chemicals arm to gain more momentum heading into FY 2026. Its digital solutions business also appears well placed to benefit from Orica's geographical reach and an improvement in exploration activity, Park says. Citi has a buy rating and A$20.65 target on Orica. "We remain upbeat on ORI's outlook beyond FY25," says Park. The stock is up 1.1% at A$20.985. ([email protected]; @RhiannonHoyle)

0104 GMT - The most pressing issue facing Australian mobile operators is the growing number of customers trading down from premium postpaid plans to prepaid services and second-tier brands, Jarden analysts say. They observe that both Telstra and TPG Telecom have acknowledged a skew in customer activity toward the lower end of the market, and think that the trend will continue into FY 2026. Telstra's success in growing prepaid and wholesale revenue-per-user at a faster rate than postpaid shows the strength of its multi-brand approach, they write in a note. Action on pricing across lower-value segments is key to further repairing industry returns, they add. ([email protected])

0032 GMT - IAG may have to divest its existing operations in Western Australia state if it is to secure permission for its latest acquisition from the competition regulator, Jarden analysts say. They think that the regulator's statement on its preliminary concerns was largely in line with market expectations, but cautions that such commentary has historically been followed by significant structural changes to a proposed deal. Other solutions in this case could include carving out geographical portfolios, maintaining target RACI's operational independence in Western Australia, or even shifting to a partial acquisition, the analysts write in a note. They keep a neutral rating and A$8.50 target price on IAG, which is up 1.2% at A$8.755. ([email protected])

2349 GMT - Tuas's bull at Citi sees the Singapore-focused telco provider's proposed acquisition of Keppel's M1 expediting its journey from challenger to clear market leader. Analyst William Park tells clients that the addition of M1 will establish Tuas as a formidable competitor in both the premium-end and value-end of the market. He sees no shortage of revenue and cost synergies over time, including consolidation of call centers and leveraging of network scale. However, he doesn't expect any detail on these when Tuas announces its annual results this month. Citi has a buy rating and last-published A$7.10 target price on the stock, which is at A$7.58 ahead of the open. ([email protected])

2346 GMT - Tourism Holdings' new bull at Wilsons thinks that the rental-vehicle provider's medium-term profit targets are underpinned by pretty undemanding assumptions. Raising his recommendation on the stock to overweight from market-weight, analyst Ben Wilson reckons that assumptions including 25% growth in rental days and rental yields in line with inflation look reasonable. The dual-listed company wants a NZ$100 million net profit within three to four years. Wilson lifts his FY 2028 normalized net profit forecast 9.6% to NZ$82 million. Wilsons' target price on Tourism Holdings' ASX-listed stock rises 39% to A$2.94. Shares are at A$2.19 ahead of the open. ([email protected])

2253 GMT - Charter Hall's latest fund launches highlight the Australian property manager's momentum, Morgan Stanley says. Charter Hall this week launched the fund-raising for two new unlisted property funds, both on its Direct platform, to wholesale investors. Analyst Simon Chan says the DCRF and WPS3 funds highlight Charter Hall's wide range of sources of inflows, which now include high net worth individuals as targets. "We do not believe either DCRF or WPS3 to be too material in the scheme of Charter Hall's now A$69.4 billion property assets under management, given the small ticket size (e.g. minimum investment just A$100,000)," MS says. "But this is another incremental positive." MS retains an "overweight" call on Charter Hall. ([email protected]; @dwinningWSJ)

2245 GMT -- IAG's proposed acquisition of RAC Insurance is unlikely to proceed after the Australian competition regulator raised concerns about the deal, Morgan Stanley says. It estimates the combined share of IAG and RAC in Western Australia's motor and home insurance market could approach 50%. That is likely too high. "We think the debate starts to shift back to organic growth," says analyst Andrei Stadnik. IAG's top-line growth guidance for FY 2026 -- when excluding benefits from acquisitions -- is slightly softer than peers. "With less support from inorganic opportunities and fewer reinsurance levers to pull, we see IAG's earnings growth moderating alongside a slower pricing cycle," MS says. It has an equal-weight call on IAG. ([email protected])

2237 GMT -- Lotus Resources's A$65 million capital raise looks a sensible move to Ord Minnett. Lotus wants to fortify its balance sheet as it ramps up output from the Kayelekera uranium mine in Malawi. Analyst Matthew Hope had felt Lotus's finances were strong enough to manage the restart of Kayelekera. But he says Lotus is raising from a position of strength because its share price is up some 43% over the prior month. "We consider Lotus's approach prudent, as it will consume working capital in December half of 2025 with the commencement of mining and growth of product and run-of-mine inventories," Ord Minnett says. "Cash receipts are most likely due in June half of 2026." ([email protected])

2229 GMT -- Vault Minerals's surprise decision to buy back stock is a good "back-stop" mechanism for its share price, Euroz Hartleys says. Vault didn't put a dollar value on the buyback. It said the intention is to repurchase up to 10% of its share capital over 12 months. Analyst Mike Millikan notes that Vault's share price has risen some 36% to A$0.57 since the buyback was announced. He thinks Vault could spend A$180 million on repurchasing stock. Euroz Hartleys retains a buy call on Vault, and lifts its price target by 12% to A$0.75/share. ([email protected])

2152 GMT - Australia's recent company reporting season hinted at improving consumer demand in Australia and New Zealand, Jefferies analysts write in a note. Parsing data from the past five weeks, Michael Simotas and Naveed Fazal Bawa observe that the period was volatile for stocks, but largely positive for those in consumer sectors. They say that 10 out of 13 companies they cover saw their shares outperform the broader market across the reporting season, with furniture retailers Harvey Norman and Nick Scali the best performers. They see further upside potential for Harvey Norman, Nick Scali and supermarket supplier Metcash, on the expectation that current consumer-demand trends will continue. ([email protected])

(END) Dow Jones Newswires