0127 GMT - Electro Optic Systems' revenue guidance didn't shock as investors look to a future marked by higher defense spending globally. Electro Optic Systems signaled FY 2025 revenue of A$115 million-A$125 million. That was 25% below Ord Minnett's estimates. Yet Electro Optic Systems' stock rose 13%. "We are of the view that the market is assessing Electro Optic Systems on a multiple of future revenue basis and is hence dismissive of current year earnings revisions," analyst John Lawlor says. Ord Minnett moves to a sum-of-the-parts methodology for valuing the stock. It values the Remote Weapon System business at A$725 million, High Energy Laser Weapons at A$833 million and Space Control at A$600 million. Its price target rises to A$11.18/share, from A$4.70. Electro Optic Systems is up 1.4% at A$9.58. ([email protected]; @dwinningWSJ)

0032 GMT - Investors should pay more attention to Lotus Resources as commercial production at the Kayelekera uranium mine in Malawi nears, Ord Minnett says. The recent rally by the spot uranium price bolsters this view. Lotus is Ord Minnett's top pick among Australian uranium miners and developers. "Of the peers, the Boss Energy investment case is unclear until it completes a new study by the end of the year, while Paladin Energy has rallied strongly and its multiples now look stretched," analyst Matthew Hope says. "Lotus has remained largely overlooked but is now entering production on a derisked mine with past production." Initial production should be high cost at about US$50-60/lb in 2026, but this should fall as Lotus's acid plant starts up and grid power is connected, Ord Minnett says. ([email protected]; @dwinningWSJ)

0022 GMT - Citi trims earnings forecasts for Australia's energy companies after becoming less positive about the oil price outlook. Citi expects the Brent oil price to average US$62/bbl in 2026, compared to a prior expectation of US$65/bbl. It expects the OPEC+ group of countries to unwind some 1.6 million b/d of production cuts. At the same time, output from outside this group will rise strongly. "China's stockpiling and OECD inventory builds provide partial support, moderating our bear case," Citi says. It lowers core earnings forecasts for Woodside Energy in 2026 by 8% to US$761 million, and for Karoon Energy by 17% to US$122 million. Citi says Karoon remains its "top value play with plenty of potential near-term positive catalysts." ([email protected]; @dwinningWSJ)

0006 GMT - Integral Diagnostics has room to grow profit margins from FY 2025 levels, says Canaccord Genuity. That helps to keep the bank bullish about the Australian health care company's stock. One reason why Canaccord is confident on margins is the Integral Diagnostics's Imaging @ Olympic Park, a musculoskeletal diagnostic imaging site. "The clinic is unique, and its structure and performance impressed us," says analyst Elyse Shapiro following a recent tour of the IOP site. Canaccord believes IOP can contribute more revenue at a higher margin. A wider rollout of the IDXt teleradiology service and more savings from acquisitions can also boost margins, Canaccord says. Its price target falls 5.9% to A$3.20/share. Integral Diagnostics ended Monday at A$2.79. ([email protected]; @dwinningWSJ)

2348 GMT - The opportunity for Electro Optic Systems is expanding as more governments seek to counter the threat to their defenses from drones, Bell Potter says. It highlights the European Union's desire to build a 'drone wall' on its eastern flank after several recent incursions into its airspace. Analysts Baxter Kirk and David Laing say Electro Optic Systems "is fully leveraged to increases in defense budgets globally magnified by higher spending allocations to counter-drone technology." It expects news flow over the next six months to be positive, underpinning a buy call on the stock. Bell Potter raises its price target by 92% to A$11.00/share. Electro Optic Systems ended Monday at A$9.45. ([email protected]; @dwinningWSJ)

1932 ET - IDP Education's new bull at Jefferies takes heart from IELTS web traffic data turning positive for the first time since June 2023. IELTS is an English language test that is often taken by students seeking visas to study abroad. These web-traffic data points offer early signs of a likely macro turnaround for IELTS, analyst Wei Sim says. In turn, this would boost IDP's student placement business. "In spite of other near-term potential negative catalysts on a one-year view we think macro will trump everything," Jefferies says. It upgrades IDP to buy from hold, and raises its price target by 72% to A$8.60/share. IDP ended Monday at A$5.66. ([email protected]; @dwinningWSJ)

2319 GMT -- Approval by the Food and Drug Administration -- and subsequent CMS reimbursement -- for 4DMedical's CT:VQ test unlocks a critical inflection point for the company to succeed, Jefferies says. 4DMedical's technology offers non-invasive imaging of a patient's lungs. Jefferies says the technology disintermediates the need for a nuclear VQ test, which is more time-consuming, expensive and invasive. "Uptake may take time, but we think 4DMedical's strengthened financial position will likely see them through to free cash flow positive, and that their last capital raise is likely behind them," analyst Wei Sim says. Jefferies starts 4DMedical at buy with a A$2.50/share price target. 4DMedical ended Monday at A$1.80. ([email protected])

(END) Dow Jones Newswires