0111 GMT - DUG Technology keeps its bull at Canaccord Genuity despite the increased capital commitment required by its new contract with Petronas. Analyst Allan Franklin tells clients in a note that working capital shouldn't be an issue and that the payment terms of the US$43.3 million contract look favorable. He expects the resources technology provider to sign an asset financing in the coming months. Franklin observes that Petronas has used DUG's tech for many years but that has now become one of the Australian company's top customers. Canaccord Genuity raises its target price 14% to A$2.90 and keeps a buy rating on the stock. Shares are up 3.2% at A$2.61. ([email protected])

0056 GMT - Competition for new personal insurance business continues to look challenging for Australian incumbents, according to Macquarie analysts. They point to the 24% on-year growth in 2H gross written premium at Youi, an Australian subsidiary of South Africa's OUTsurance. This compares to 6.2% at Suncorp, and to 4.2% at IAG. The analysts tell clients in a note that Youi has stopped participating in broker sales to focus on direct marketing. Its growth was assisted by an increasing market share of compulsory third-party motor insurance in NSW state, they add. Macquarie stays neutral on both Suncorp and IAG. ([email protected])

2344 GMT - Centuria Office REIT gets a new bear in UBS, which expects limited growth in its distribution as reducing gearing becomes a priority. That's despite pressure on its balance sheet easing to some extent as interest rates fall. "The downtime seen over FY 2025/2026 has been a drag on earnings and continued leasing headwinds will likely limit cash flow for Centuria Office REIT," UBS says. It thinks Centuria Office REIT's payout ratio is too high, noting that its distribution has exceeded adjusted funds from operations. "Centuria Office REIT will likely manage this by growing distributions less than earnings over time," UBS says. It downgrades the stock to sell, from neutral. ([email protected]; @dwinningWSJ)

2342 GMT - Wilsons analysts see potential for DUG Technology's valuation multiple to expand as the mining-tech provider increases the pace and size of its services contract wins. Already bullish on the stock, they tell clients in a note that they don't consider their target multiple of 7 times Ebitda to be particularly onerous. They think that the Australia-listed company can generate about US$8 million in annual Ebitda from its new contract with Malaysia's Petronas, which represents meaningful upside to the US$15 million the company reported in its last fiscal year. Wilsons lifts its target price 22% to A$2.86 and keeps an overweight rating on the stock. Shares are at A$2.53 ahead of the open. ([email protected])

2321 GMT - Baby Bunting's bulls at Citi see potential for strong apparel margins at the Australian retailer's new small-format stores. The Citi analysts say the apparel they saw during a recent visit to Baby Bunting's first such store was largely private-label, which they point out should be healthy for margins. They observe that the location enjoys significant foot traffic and that store stock skews toward items often needed frequently or urgently. The store format, which Baby Bunting is trialing, could become one of the company's key growth drivers, they reckon. They think that 20 to 40 small stores could add between A$4 million and A$8 million in annual Ebitda. Citi has a last-published "buy" rating and A$3.04 target price on the stock. Shares are at A$3.01 ahead of the open. ([email protected])

2315 GMT - Computershare could struggle to follow through on its acquisition aspirations without a material change in interest rates, Citi analyst Nigel Pittaway warns. He reckons that the Australia-listed share-registry provider has up to US$3 billion of debt-supported capacity for M&A activity. Pittaway tells clients in a note that Computershare is looking for a sizable acquisition in the corporate-trust space but that it will be challenging to find a willing seller at an acceptable price. Citi keeps a "neutral" rating and A$40.40 target price on the stock, which is at A$37.67 ahead of the open. ([email protected])

2302 GMT -- Tuas's bulls at Citi think that synergies from the Singapore-focused telco's acquisition of M1 could be larger than anticipated. Looking at global telecommunications transactions over the past 20 years, Citi analysts tell clients in a note that synergies typically reach 30% of the target's pre-deal annual Ebitda. They reckon that this is the minimum that should be expected from the Tuas-M1 tie-up. They see no shortage of revenue and cost synergies, and point to meaningful capital-expenditure synergies such as in 5G network roll-out. Citi raises its target price 40% to A$9.95 and keeps a buy rating on the stock, which is at A$7.49 ahead of the open. ([email protected])

2248 GMT - CSL's collaboration agreement with closely held VarmX to advance a blood-coagulation treatment signals the start of a new R&D philosophy for the Australian company, according to Jefferies. CSL aims to focus on development by buying assets into its pipeline. VarmX owns the VMX-C001 treatment that aims to restore blood coagulation in patients taking a FXa inhibitor. "We believe this could be an adjunct to CSL's Kcentra franchise, and if successful will compete with Andexxa," analyst David Stanton says. Jefferies estimates annual peak sales for VMX-C001 of some US$240 million. It retains a "buy" call on CSL. ([email protected]; @dwinningWSJ)

2242 GMT - Ord Minnett raises its price target on DUG Technology by 25%, to A$2.89/share, after the software company says a deal with Malaysia's national oil company will be bigger than initially thought. DUG says the contract with Petronas is now worth US$30 million, much higher than the US$18 million originally projected. The increased value is driven by higher compute and storage requirements, expanded use of the DUG Insight software package, and the provision of dedicated geophysicists. "The deal is DUG's largest to date and with a tier 1 counterparty, as such we would expect the strong validation for DUG's offerings to attract further wins," analyst Milo Ferris says. Ord Minnett retains a "buy" call on DUG, which ended Tuesday at A$2.53. ([email protected]; @dwinningWSJ)

2230 GMT -- Lark Distilling's CEO change surprises bull Canaccord Genuity. Lark said Sash Sharma would step down as CEO at the end of December, to be replaced by Stuart Gregor, co-founder of Four Pillars Gin and a current nonexecutive director on Lark's board. Analyst Allan Franklin considers Gregor to be a strong successor, noting his experience in growing Four Pillars to the point that it was acquired by Kirin Holdings unit Lion in 2023. "Executing on the sales acceleration both domestically and internationally remains the key watch point for investors," says Canaccord. It expects sales to pick up from 2Q of FY 2026. Canaccord retains a buy call and A$1.34/share price target on Lark, which ended Tuesday at A$0.81. ([email protected])

2234 GMT - Paladin Energy's A$300 million equity raising looks opportunistic to Ord Minnett as the uranium miner capitalizes on a strong share price. Paladin aims to use the proceeds to advance the Patterson Lake South uranium project in the Athabasca Basin of Canada's Saskatchewan province. "The raise was prudent as cash would not have met the new Patterson Lake South spend for engineering," analyst Matthew Hope says. Ord Minnett downgrades Paladin to "hold," from "accumulate," noting the stock has rallied about 20% since late August and now looks fully valued. Its price target falls 1.3%, to A$7.60/share. Paladin was at A$7.88 prior to entering a trading halt for the raising to take place. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires