0334 GMT - The outlook for shares of metals recycler Sims is under pressure from soft scrap prices, according to Morgan Stanley analysts Joseph Michael and Julianna Sick. In a note, the analysts say Sims' valuation appears elevated given near-term earnings are being eroded by weak ferrous margins. MS's target on the stock drops to A$12.50/share from A$13.00. The bank reiterates an underweight rating. Longer term, MS reckons Sims will enjoy structural tail winds from greater use of electric arc furnaces and its focus on margins over volume, the analysts say. Sims is down 2.4% at A$13.61. ([email protected]; @RhiannonHoyle)

0131 GMT - CAR Group's bull at Citi sees fresh used-car sales data from Brazil as supportive of his forecasts. Analyst Siraj Ahmed tells clients in a note that 20% on year growth in August sales chimes with his forecast for 23% FY 2026 revenue growth at the Australian vehicle advertiser's Webmotors unit. He points out that growth has accelerated from 17% in July, and from 14% over 2H FY 2025. The data suggests that changes to Brazil's tax rules aren't having an impact, Ahmed adds. Citi has a buy rating and A$42.55 target price on the stock, which is up 0.1% at A$39.50. ([email protected])

0120 GMT - Competition among Australian banks for business customers is likely to remain rational, Citi analyst Thomas Strong says. He tells clients in a note that there have been periods in which banks reinvest the benefit of tailwinds on one side of their balance sheet into competition on the other side. He calls the process cross-subsidization. However, a widely expected stable interest-rate environment suggests little in the way of tailwinds anywhere on the lenders' balance sheets over the near term. This means competition will have to be balanced and rational, Strong reckons. ([email protected])

0102 GMT - Citi analyst Nigel Pittaway still wants exposure to Australian general-insurance stocks despite slowing organic premium growth. He acknowledges that the investment case is becoming harder but still forecasts relatively stable near-term margins at QBE, IAG and Suncorp, with reasonable but mostly slowing organic premium growth. QBE remains his pick of the trio. He tells clients in a note that he thinks it will meet its combined operating ratio guidance for 2025, and doesn't see the departure of its CFO changing its return-on-equity outlook. Citi keeps a buy rating and A$26.20 target price on QBE stock, which is down 1.8% at A$21.23. ([email protected])

2308 GMT - Changes in road user charging legislation in New Zealand is a "company altering opportunity" for Eroad, given its dominant market position in the telematics space there, Shaw & Partners says. The proposed changes mean the existing fuel excise duty, currently paid at the pump, will be managed by electronic road user charging in future. This reflects rising take-up of electric vehicles. "Eroad's cost-to-serve at 6-7% of New Zealand revenue, national installer network, insurer/fuel-card channels, and a 56% share of heavy-vehicle RUC kilometers underpin a difficult-to-displace position versus potential new entrants," says analyst Jack Daley. Shaw raises its price target on Eroad by 50% to A$2.70/share to account for the opportunity. Eroad ended last week at A$2.29. ([email protected]; @dwinningWSJ)

2257 GMT - Investors in Lunnon Metals can gain imminent exposure to gold prices at record highs, all while getting paid to wait for nickel market conditions to improve, says bull Shaw & Partners. Lunnon is in the final stages of talks with Gold Fields over treating Lady Herial ore at the nearby St Ives Gold Plant. "If negotiations are successful, we forecast A$34 million Ebitda to Lunnon at our revised gold price US$4,000/oz in 2026," analyst Peter Kormendy says. Shaw raises its price target on Lunnon by 25% to A$0.75/share and retains a buy call on its stock. Lunnon ended last week at A$0.28.([email protected]; @dwinningWSJ)

2250 GMT - ANZ could adopt new financial targets when CEO Nuno Matos updates on the lender's strategy in October, Morgan Stanley says. That's because Matos is a former executive of HSBC which provides targets and guidance. MS thinks a medium-term target of 11-12% return on equity is plausible. That compares to 9.5% in FY 2024. However, a higher range could be viewed as overly ambitious, MS says. "Assuming 4-5% per annum volume growth, our scenario analysis suggests ANZ could only achieve an ROE of 11-12% if the margin rises by 0-5bp over the next three years and it reduces the cost base by 1-2% per annum to A$10.9 billion-A$11.6 billion in FY 2028," analyst Richard E. Wiles says. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires