0358 GMT - Macquarie's disappointing 1H leaves the Australian financial giant in need of a much stronger finish to meet market expectations for the full year, UBS analysts warn. They tell clients in a note that Macquarie's 1H net profit and interim dividend were both 10% short of consensus. They add that Macquarie's decision to reallocate its green investments into its corporate unit for reporting purposes could signal a throwing in of the towel on the assets--or the asset-management unit gearing up for something bigger. The UBS analysts don't express a view on which is more likely. UBS has a last-published neutral rating and a A$225.00 target price on the stock, which is down 7.6% at A$200.92. ([email protected])

0341 GMT - Canada's caps on international students are viewed by Macquarie analysts as less tough than they could have been on student-placement provider IDP Education. Macquarie's analysts point out that Canada's cap of 155,000 students for 2026 applies only to new visas. Importantly for IDP, it doesn't include extension visas. Parsing incomplete immigration department data for recent years, they reckon that this new cap could actually imply growth in 2026 on 2025's run rate of 80,000. It is important to stay cautious, they add, especially given Canada-India diplomatic relations. Macquarie has a last-published neutral rating and a A$6.00 target price on the stock, which is down 4.4% at A$4.77. ([email protected])

0334 GMT - National Australia Bank might have to cut its dividend in fiscal 2027, Macquarie analysts warn. They tell clients in a note that NAB's thin capital buffer, high payout ratio and solid growth in risk-weighted assets present downside risk to the dividend. They see no immediate threat for the lender's current fiscal year, which began Oct. 1, but say its most recent annual result supported their long-held concerns about payout sustainability. The Macquarie analysts expect flat bad and doubtful debts in the current fiscal year and say NAB is well provisioned relative to peers. Macquarie raises its target price by 2.6% to A$39.00 and stays neutral on the stock, which is up 0.9% at A$43.465. ([email protected])

0324 GMT - National Australia Bank's bear at Citi reckons that costs and bad debts will probably stop the lender building capital buffers in fiscal 2026. Maintaining a sell rating on the stock, analyst Thomas Strong tells clients in a note that capital generation looks constrained over the period and that it has a much slimmer buffer over post-dividend operating targets than its major peers. Strong forecasts a modest contraction in net interest margin, persistent cost growth and incrementally higher bad and doubtful debts for fiscal 2026. He sees cash earnings staying flat over the period. Citi raises its target price by 2.8% to A$37.00 and keeps a sell rating on the stock, which is up 1.1% at A$43.49. ([email protected])

0213 GMT - National Australia Bank's capital position leaves the lender with less room to positively surprise analysts, UBS analysts say. They tell clients in a note that NAB, which is traditionally strong in business banking, needs to balance its strong lending growth against its 11.7% CET1 capital ratio, as rival Westpac this week reported a 12.5% ratio. With a 75% payout ratio already forecast, this gives NAB less headroom to surprise to the upside, UBS says. The analysts add that NAB needs to rebuild its capital buffers, maintain cost discipline and execute targeted lending initiatives if it is to drive earnings growth. UBS raises its target price by 13% to A$42.50 and keeps a neutral rating on the stock, which is up 1.5% at A$43.69. ([email protected])

0138 GMT - National Australia Bank's earnings outlook and capital position aren't enough for the lender to hang on to its bulls at Morgan Stanley. The investment bank's analysts lower their recommendation on the stock to equal-weight from overweight, telling clients in a note that NAB's organic capital generation was soft in the second half of its last fiscal year. They don't see any dividend risk in fiscal 2026 but think that the lack of a meaningful capital buffer above NAB's stated target reduces its capacity to accelerate growth in business or institutional banking. MS cuts its target price 5.9% to A$40.00. Shares are up 1.8% at A$43.82. ([email protected])

0117 GMT - National Australia Bank keeps its bull at Jefferies on its continued large exposure to the country's small- and medium-sized businesses. Analyst Andrew Lyons tells investors that NAB's positioning with these customers should drive earnings outperformance in FY 2026. The bank's FY 2025 result showed it can effectively manage its underlying net interest margin and maintain strong volumes despite heightened competition for non-retail custom. Jefferies raises its target price 0.3% to A$46.31 and keeps a buy rating on the stock, which is up 1.8% at A$43.81. ([email protected])

2255 GMT - Australian stock futures are pointing to an opening decline for the country's benchmark index. Local futures are down by 0.2% ahead of Friday's session, pointing to an opening fall for the S&P/ASX 200. The index is coming off a 0.3% rise but remains 0.6% lower so far this week and is on course for a second consecutive weekly decline. Ahead of the open, financial giant Macquarie reported a first-half profit that fell well short of analysts' expectations amid higher operating costs. Qantas Airways said it expects first-half domestic revenue at the lower end of guidance. U.S. equities finished lower. The DJIA lost 0.8%, the S&P 500 fell 1.1%, and the Nasdaq Composite shed 1.9%. ([email protected])

0448 GMT - Domino's Pizza Enterprises' debt refinancing gives the Australian fast-food operator the flexibility to execute on management's turnaround plans, Jefferies analyst Michael Simotas says. He views the new A$1.05 billion facilities positively, telling clients that the more generous covenants mitigate investors' concerns over the balance sheet. Simotas also reckons that Domino's probably reduced its interest rate. Operationally, he says there remains a lot of work to do on unit economics and sales volumes. He is looking for cost reductions to be quantified at next week's annual general meeting, which could be a positive catalyst. Jefferies has a buy rating and A$30.00 target price on the stock, which is up 4.7% at A$20.04. ([email protected])

(END) Dow Jones Newswires