0312 GMT - Morgan Stanley analysts rate Australian banks' recent results as satisfactory, but no more. They warn clients in a note that they saw nothing from ANZ, Commonwealth Bank, National Australia Bank, or Westpac to suggest their shares will further outperform the broader market. In fact, they reckon that the stocks will probably de-rate if the Reserve Bank of Australia pivots to a tightening rate cycle. They say that the quartet's record price-to-earnings multiples suggest that high expectations are priced in, and see few options for capital management or material surprises on dividend payouts. The analysts' order of preference is: ANZ, NAB, Westpac, Commonwealth. ([email protected])

0252 GMT - Accounting-software provider Xero keeps its bulls at UBS despite the impact of increased short-term reinvestment. UBS analysts tell clients in a note that they keep a buy rating on the stock despite their conservative view of the potential upside from cross-selling between Xero's users and those of its US$2.5 billion Melio bill-pay acquisition. They think Melio's top-line momentum means it will break even at the Ebitda level in fiscal 2029, a year earlier than previously forecast. UBS trims its target price 4.4% to A$194.00. Shares are down 3.0% at A$123.54. ([email protected])

0249 GMT - Regis Resources' extension of its Duketon North gold mine is value accretive both at spot prices and forecast ones, Macquarie analysts say in a note. The analysts view it "as a relatively low-cost/risk strategy to take advantage of spot gold prices and latent mill capacity," they say. Macquarie has a neutral rating on Regis. It raises its target by 5.9% to A$7.20 to account for the slightly stronger production outlook. The stock is down by 2.2% at A$7.07 amid a broad selloff in Australian stocks. ([email protected]; @RhiannonHoyle)

0238 GMT - Xero's bulls at Morgan Stanley believe bill-pay provider Melio will augment growth and lift returns for the Australia-listed accounting-software provider. They acknowledge that Xero may have overpaid with its US$2.5 billion acquisition, but tell clients in a note that they remain convinced that the allocation of capital is strategically sound and will open up additional growth opportunities in the U.S. and beyond. The market wants to see evidence that the deal can pay off before the stock rerates, they add. MS trims its target price by 4.3% to A$225.00 and keeps an overweight recommendation on the stock, which is down 3.1% at A$123.41. ([email protected])

0236 GMT - Orica's leverage to stronger gold prices is "starting to shine through," Macquarie analysts say in a note following the explosive and chemicals maker's annual profit report. They say its FY 2025 result is solid and that the earnings outlook is positive. They also highlight the balance sheet as being "in good shape." The analysts tip EPS growth of 11% in FY 2026 and 10% in FY 2027. Macquarie raises its target on the stock to A$25.95 from A$22.71. It reiterates an outperform rating. Orica is up 1.3% at A$23.69, despite a broad retreat in Australian stocks. ([email protected]; @RhiannonHoyle)

0234 GMT - Navigator Global Investments' bulls at UBS are enthusiastic about the alternative investment manager's ambition to double earnings over the next five years. The multiple benefits of Navigator's relationship with major shareholder Blue Owl are among the factors cited by UBS analysts for their continued buy rating on the stock. They also point to the number of acquisition opportunities and the resilience and diversity of performance fees that Navigator collects. They tell clients in a note that Navigator's aspirational organic earnings trajectory appears conservative. UBS raises its target price 13% to A$3.85. Shares are down 3.9% at A$2.93. ([email protected])

0044 GMT - Rio Tinto appears to be softening its commitment to lithium, say Morgan Stanley analysts, after the miner decided to put its Jadar project on care and maintenance. That suggests "a sharper focus on capital discipline, with lithium growth having represented a sizable portion" of Rio's annual capex plans, the MS analysts say. They reckon "this potential strategy re-calibration could be well received by investors." MS has an overweight rating on Rio Tinto. The stock is down 1.7% in Sydney at A$131.44, amid a broad-based retreat in equities. ([email protected]; @RhiannonHoyle)

2327 GMT - Xero's Melio unit will break even two years later than previously expected, Jefferies analyst Roger Samuel warns. He sees the accounting-software provider's bill-pay business hitting the milestone in fiscal 2032, not fiscal 2030 as he previously forecast. Samuel acknowledges that Melio's revenue momentum is strong but tells clients in a note that losses at the Ebitda line narrowed only slowly in Xero's fiscal first-half. He lowers his group Ebitda forecast by 6% for the current fiscal year and by 15% in fiscal 2027. Jefferies cuts its target price 19%, to A$135.50, and keeps a "hold" rating on the stock, which is down 2.0%, at A$124.79. ([email protected])

0724 GMT - ST Engineering is likely to retain its loss-making satellite communications business iDirect, given that it has invested in a new platform for the business, says Morningstar director Lorraine Tan in a note. This is despite the Singapore engineering company recognizing a "disappointing" impairment charge on iDirect, she says. Tan finds it difficult to see any light to this business over the longer term as its client base is consolidating, narrowing the market for iDirect's solutions. While iDirect's losses are fairly small, it is "destroying value" for ST Engineering, she says. "The hope is that the excess satellite capacity is absorbed, allowing iDirect's clients to consider further investment," she adds. Morningstar retains its fair-value estimate at S$8.10, noting the shares are fairly valued. Shares are up 4.95% at S$8.70. ([email protected])

(END) Dow Jones Newswires