0411 GMT - Service Stream's bulls at Macquarie are enthused by the infrastructure-services provider's A$1.6 billion defense contract, telling clients that it opens up a whole new vertical for the Australian company. Macquarie analysts write in a note that they hadn't expected Service Stream to win in two regions, or for the award to be this large. The contract represents a 10% increase to their prior fiscal 2027 revenue forecast and puts Service Stream in a good position to secure additional work that drive incremental revenue growth, they add. Macquarie lifts its target price 12% to A$2.70 and keeps an outperform rating on the stock, which is down 0.7% at A$2.305. ([email protected])

0255 GMT - Perenti's latest contract for underground mining services at Ramelius' Dalgaranga gold project pleases Citi, which reiterates a buy rating and A$2.55 target on the stock. "Positively, PRN continues to replenish and build on its robust secured work," analyst William Park says in a note. Citi estimates Perenti's work in hand could be as much as A$6 billion. The company also has plenty of room within existing capital expenditure guidance to chase new contract awards, Park adds. "We believe there is no shortage of opportunities that could potentially be crystallized in favor of PRN in FY26 including, but not limited to, Cowal, Geita, and Red Chris," he says. Perenti is down 1.0% at A$2.475, following a 4.2% gain Thursday. ([email protected]; @RhiannonHoyle)

0005 GMT - Infragreen gets a new bull at Morgans, where analyst Jared Gelsomino sees potential both for strong organic growth and for bolt-on acquisitions. Initiating coverage of the ASX-listed stock with a buy rating, Gelsomino tells clients that he expects near-term growth to be led by the industrial operator's solar-panel installation business. He expects strong solar installation demand to drive 37% growth in the group's FY 2026 underlying Ebitda, with the rest of its portfolio also making solid contributions. Balance-sheet strength bodes well for acquisitions in fragmented markets with high barriers to entry, he adds. Morgans puts a A$1.30 target price on the stock, which is at A$1.09 ahead of the open. ([email protected])

2343 GMT - Service Stream's premium valuation relative to its Australia-listed peers looks justified to its bulls at Citi. The investment bank's analysts tell clients in a note that there are multiple near-to-medium term upside catalysts that could help the infrastructure-services provider maintain solid earnings growth. They are pleasantly surprised by the scale of Service Stream's new defense contracts and also think that its utilities margin could continue to surprise to the upside. Service Stream also has the balance sheet to pursue M&A, they add. Citi raises its target price 8.2% to A$2.65 and keeps a buy rating on the stock, which is at A$2.32 ahead of the open. ([email protected])

2327 GMT -- Any potential upside to Macquarie's earnings from rebounding capital markets already looks priced in, according to Morgan Stanley analysts. They tell clients in a note that recovering M&A activity presents upside risk to their forecasts, but that the stock is trading at 21.5 times their fiscal 2026 net profit forecast, which compares with a 10-year average of 16. This suggests to them that a capital-markets recovery and Macquarie's structural growth options are already incorporated into investors' outlook. Return-on-equity prospects are also weaker than at Commonwealth Bank, they add. MS keeps an equal-weight rating and A$216.00 target price on the stock, which is at A$219.91 ahead of the open. ([email protected])

2322 GMT -- Lithium miner Pilbara Minerals should deliver a relatively smooth operational performance in FY 2026, according to Jarden analysts Ben Lyons and Adam Bennett. The year ahead is "free of the major expansion tie-ins that impacted FY25, and with maintenance shutdowns scheduled on a quarterly basis," they say. The analysts reckon Pilbara Minerals will break even on a cash basis in FY 2026 and FY 2027 at a US$900/metric ton spodumene price. The stock remains Jarden's preferred Australian lithium exposure. The bank views it as a core holding in the resources sector, the analysts say. They reiterate an overweight rating and A$2.20 target. The stock last traded at A$1.97. ([email protected])

2305 GMT - Morgans's big takeaway from a visit to Aeris Resources' Tritton copper mine: the operation is worth more than it thought. Morgans now values Tritton at A$268 million, up from A$181 million before. That view is driven a shift in its assumptions from FY27 as processing of ore from the Constellation deposit starts. Morgans raises expectations for the copper head grade by 0.1% from FY27. "Given the copper grade at Constellation is 25% higher than the greater Tritton resources (ex Constellation) we think this is conservative," analyst Ross Bennett says. "In a scenario where head grade lifts to 1.9% copper we forecast 32,500 tons copper production in FY 2028/FY 2029." Morgans raises its price target on Aeris by 39%, to A$0.43/share. Aeris ended Thursday at A$0.325. ([email protected]; @dwinningWSJ)

2255 GMT -- The recent rally by almond prices leads Bell Potter to raise its price target on Select Harvests by 2.8% to A$5.45/share. Almond prices denominated in U.S. dollars are up some 26% from lows. The move is on the back of mixed early harvest reports in California, which suggests a government forecast for the overall crop may by too optimistic. Analyst Jonathan Snape notes volatility in almond pricing has been a feature since May. "However, the long-term under development of orchards in California implies a period of limited supply expansion potential, which we view as a positive for the direction of future almond pricing trends," Bell Potter says. It retains a buy call on Select Harvests, which ended Thursday at A$3.85. ([email protected])

1840 ET - Risks to Mainfreight's earnings tilt to the downside, which may prolong the company's three-year cycle of profit downgrades, Forsyth Barr says. Mainfreight's pretax profit fell 24% in the first 17 weeks of FY 2026. That puts Mainfreight in catch-up mode, but analyst Andy Bowley says it becomes tougher to beat its performance a year ago as FY 2026 progresses. Forsyth Barr expects Mainfreight's annual pretax profit to total NZ$350 million. This implies the on-year decline narrows to 4% for the remaining 35 weeks. "We continue to believe this is achievable but requires better margin conversion, particularly in Transport and Warehousing, than that highlighted at the annual shareholder meeting, along with consistent new customer wins," Forsyth Barr says. ([email protected]; @dwinningWSJ)

2214 GMT -- Service Stream gets a new bull in Ord Minnett after it was awarded a Base Services Contract with Australia's defense department. The contract covers South Australia and Northern Territory. It is valued at A$1.6 billion over six years initially, with the potential to be extended by up to four years. "Once the contract is fully deployed, and overlaying margin and capex assumptions, our FY 2027 Ebitda forecasts are upgraded by 8% and EPS forecasts upgraded by 11%," says analyst Ian Munro. The contract win supports Ord Minnett's expectation that Service Stream's return on equity can expand to 14.6% in FY 2027, from 13.4% in FY 2025. It upgrades the stock to buy, from accumulate. ([email protected])

(END) Dow Jones Newswires