0337 GMT - DroneShield's bull at Bell Potter reckons the defense-tech provider should win a material portion of its A$2.55 billion potential sales pipeline over the next three to six months. Analyst Baxter Kirk notes that defense budgets will roll over into a new fiscal year, and he sees 2026 as an inflection point for the global counterdrone industry. Kirk tells clients in a note that countries are poised to unleash a wave of spending on so-called soft-kill detect and defeat solutions. DroneShield's market-leading counterdrone offering, years of experience and large R&D team help support a continued buy rating. Its target price rises 43% to A$5.30. Shares are up 10% at A$4.915. ([email protected])

0037 GMT - The rise in Zip's U.S. loss rates probably prevented an even stronger share-price reaction to the Australian company's fiscal 1Q update, UBS analysts reckon. They see the installment-payment provider's accelerating U.S. volumes and revenue as the highlights, telling clients in a note that the momentum sets up the company well for the seasonally stronger December quarter. Higher losses means U.S. net transaction margin fell slightly short of UBS forecasts, but the analysts point out that higher bad debts should be expected given more growth is coming from new customers. UBS lifts its target price 2.9% to A$5.40 and keeps a buy rating on the stock, which is down 3.6% at A$4.445. ([email protected])

0006 GMT - Morgans analyst Nathan Lead feels more bearish toward Westpac after the recent rally in the Australian bank's stocks. Shares in the lender have jumped about 15% since August and are trading close to record levels despite sector headwinds. Lead cuts his fiscal 2025 EPS forecast 3%, citing the costs of Westpac's productivity program, loan and deposit growth, interest-rate assumptions and recent limited buyback activity. He lowers his target price by 0.6% to A$30.77 and cuts his recommendation to sell from trim. Shares are down 0.4% at A$39.11. ([email protected])

2351 GMT - AML3D's bull at Bell Potter says its latest U.S. defense sector contract represents a solid start to its fiscal 2026. Analyst Stuart Howe observes that the US$4.5 million contract with Huntington Ingalls adds to the Australian company's US$9 million order backlog. This compares with total fiscal 2025 revenue of US$7.4 million, he points out in a note. He adds that Huntington Ingalls' adoption of additive-manufacturing technology highlights a focus on reducing lead times and waste, which is a positive signal for the whole sector. Bell Potter keeps a buy rating and A$0.40 target price on the stock, which is flat at A$0.23. ([email protected])

2326 GMT -- Upcoming revaluations of Australian commercial property will be positive but less exuberant than previous cycles, reckons Morgan Stanley. It analyzed cap rate spreads versus the 3-year swap curve over the past 20 years for major real-estate sectors. This informed how cap rates could compress from here. "We think upward asset revaluation in the medium term will be driven by 50/50 cap rate compression/rent growth," said analyst Simon Chan. That would be a different outcome to the 61/39 split in the 2012-22 property upcycle, MS says. It's hard to foresee that cap rates would compress by as much as 230 bps, which reits experienced across 2012-22, the bank adds. ([email protected])

2301 GMT -- Stanmore Resources's decision to lower the top end of its output guidance for 2025 shouldn't surprise investors, according to Ord Minnett. Stanmore now expects saleable coal production of 13.8 million-14.2 million tons. It previously targeted output of up to 14.4 million tons. Analyst Tim Elder says Stanmore's challenges in 1H were well known. Stanmore's Isaac Plains mining hub was especially hit hard by bad weather during that period. Stanmore said recovery efforts took longer than initially projected. The coal handling and processing plant has become a bottleneck for the remainder of the year, it added. Ord Minnett expects Stanmore's production in 2025 to total 13.9 million tons, with costs of US$87/ton and capex of US$78 million. ([email protected])

2252 GMT -- REA Group gets a new bull at RBC, where analyst Garry Sherriff is unconcerned by a regulatory probe into the Australian property advertiser. Initiating coverage of the stock with an outperform rating, Sherriff tells clients in a note that he thinks REA operates in the market in a reasonable and transparent manner. He sees no evidence that the No. 1 player is misusing its market power and doesn't anticipate any adverse outcomes from the competition regulator's probe. Sherriff doesn't see how CoStar-owned Domain can materially disrupt REA and thinks the latter can maintain its double-digit yield growth. RBC puts a A$270.00 target price on the stock, which is at A$218.68 ahead of the open. ([email protected])

2253 GMT -- Super Retail's decision to promote from within when searching for a new CEO gets a tick from Citi. Super Retail today said Paul Bradshaw would lead the company from Nov. 1. "We view this as positive," analyst Adrian Lemme says. That's because Bradshaw is a proven retailer, with 30 years of experience. While head of Super Retail's BCF business, Ebit grew at a compound annual rate of 24% over the past six years. Citi said hiring Bradshaw also allows for "continuity of strategy and we should see an end to management distractions." Citi has a buy call on Super Retail. ([email protected])

1851 ET - Auto parts retailer Bapcor's earnings guidance fell well short of market hopes, but Macquarie finds reasons to be positive. Bapcor signaled FY 2026 underlying net profit of A$51 million to A$61 million. Macquarie said that's more than 30% below its forecast. Still, it notes that Bapcor expects 2H earnings to be stronger than 1H due to a focus on driving sales growth, benefits of pricing realignment measures, realization of savings initiatives, and no further one-offs. "Management remain focused on executing strategic initiatives causing disruption across the group, but early signs of improvement in Networks provide some confidence in the turnaround," Macquarie says. Its price target falls 25% to A$2.90/share. Bapcor ended Monday at A$2.61. ([email protected]; @dwinningWSJ)

2240 GMT -- Beach Energy's 1Q revenue beat was driven by lifting an additional LNG cargo at its Waitsia natural-gas project in Western Australia. For Macquarie, that strategy could have a long-term cost. "The continued LNG forward sales are commercially savvy but also add risk, taking earnings from the future on an already short 2P reserve life (<7>

1828 ET - Zip's bull at Ord Minnett sees a lot to like in the Australian payments provider's fiscal first-quarter performance. Revenue margin was in line with analyst Phillip Chippindale's expectation, but earnings beat his forecast as increased frequency of use by consumers drove a 47% jump in U.S. total transaction volume. The installment-payment provider's 19.5% operating margin was ahead of Chippindale's forecast and Zip's guidance for 16% to 19% for the full year. He tells clients in a note that this looks conservative and thinks 20% is achievable. Ord Minnett raises its target price 5.9% to A$5.40 and keeps a buy rating on the stock, which is at A$4.61 ahead of the open. ([email protected])

0501 GMT - Gold's bull market has meaningful room to run, according to SG Hiscock & Co. portfolio manager Rory Hunter. He reckons junior gold companies still "present attractive value" despite recent gains. SG Hiscock, which oversees A$3.3 billion in assets, has been gradually rotating exposure toward developers and explorers in recent months, he says. "A sign of late-cycle exuberance is when executives from the major producers begin leaving to join junior explorers," Hunter tells WSJ. "We're not there yet." ([email protected]; @RhiannonHoyle)

0421 GMT - Iluka is facing choppy waters in the near term as it navigates difficult mineral sands markets. However, Macquarie analysts say they are focused on talks between Australia and the U.S. on critical minerals, which could benefit the Australian miner. Iluka is currently developing a rare-earth refinery in Western Australia. "While we acknowledge near-term share price volatility, the strategic implications of AU-U.S. critical mineral discussions--especially around non-China-aligned offtake and federal support--could materially enhance ILU's investment case," the analysts say in a note. Macquarie has a neutral rating on Iluka. It reiterates a target of A$7.10/share. Iluka is down 7.3% at A$7.51. ([email protected]; @RhiannonHoyle)

0408 GMT - A planned changeover of Aurizon's chairman and a pending decision on whether to partially sell its network business could be catalysts for the rail operator's share price to move higher, say Macquarie analysts. The bank upgrades the stock to outperform from neutral. It raises its target to A$3.70/share from A$3.34. The analysts say changing Aurizon's chair could result in a revised strategy to address the issue of inconsistent above-rail growth. The decision about the future of the network business is likely to be made under the new chair, the analysts say. Aurizon is up 2.2% at A$3.425. ([email protected]; @RhiannonHoyle)

(END) Dow Jones Newswires