2343 GMT - Morgans analyst Keeley Walsh is waiting to see how Collins Foods' strategy in Germany plays out before turning more positive on the stock. She tells clients in a note that the ASX-listed company is outperforming fast-food franchising peers in Australia and Europe despite a challenging consumer environment. The KFC-brand operator has flagged Germany as its next big growth opportunity, with potential for inorganic acquisitions to accelerate plans. Keeley wants to see evidence that management is executing on strategy. Morgans lifts its target price 1.6% to A$12.40 and keeps an accumulate rating on the stock. Shares are down 2.95% at A$10.87. ([email protected])

2340 GMT - AUB Group's bulls at Macquarie stay positive given apparent resilience in the insurance broker's premium-rate pricing. Resuming coverage of the stock with an outperform rating, Macquarie's analysts highlight what looks like better pricing trends relative to peers including Steadfast. They point out that AUB management says they haven't seen the softening observed elsewhere, with client and product mix among the possible explanations. The Macquarie analysts tell clients in a note that AUB's commentary and medium-term contracts imply potential upside to their forecasts from fiscal 2027 onwards. Macquarie puts a A$37.40 target price on the stock, which is down 1.4% at A$31.115. ([email protected])

2323 GMT - The strength of Collins Foods' balance sheet gives the Australian fast-food franchiser the capacity for acquisitions to drive benefits of scale, Macquarie analysts write in a note. Germany looks particularly interesting, they say, as the ASX-listed company is actively assessing bolt-on opportunities that could accelerate its growth there. Collins' debt stands at just 0.9x earnings and the company is still growing earnings, they add. Overall, the view at Macquarie is that Collins is executing well on cost management and top-line growth, although the outlook for Australian margins is uncertain. Macquarie lifts its target price 4.5% to A$11.70 and stays neutral on the stock. Shares are down 2.8% at A$10.89. ([email protected])

2248 GMT - Jefferies analyst Wei Sim sees limited impact on Australia's Zip from the U.S. attorney general's inquiry into buy-now-pay-later operators. Sim points out that the ASX-listed company already maintains stringent policies, including relatively tight controls on accounts with missed repayments. Zip has also controlled U.S. net bad debts relative to transaction value, he tells clients in a note. Sim sees the risk to Zip being a potential requirement for credit score evaluations if regulatory trends become stricter. This isn't certain, he adds. Jefferies has a last-published hold rating and A$5.00 target price on the stock, which is at A$2.95 ahead of the open. ([email protected])

2220 GMT - Collins Foods' bull at Citi is confident that the Australian fast-food franchiser can maintain sales growth even if consumers are faced with higher interest rates. While the investment bank doesn't anticipate a rate hike in Australia, analyst Sam Teeger thinks that Collins appears cautious on potential consumer impacts from a shift in central-bank policy. Nonetheless, he tells clients in a note that Collins is doing an excellent job in driving same-store sales growth through menu innovation and value offerings. He reckons that this approach should sustain Collins' sales even if the Reserve Bank raises the cash rate. Citi trims its target price 1.7% to A$12.85 and reiterates a buy rating on the stock, which is at A$11.20 ahead of the open. ([email protected])

2217 GMT - Rio Tinto CEO Simon Trott is likely to use the miner's capital-markets day on Thursday to underscore a pivot toward simplicity by streamlining its structure, reducing costs, and prioritizing cash generation, Morgan Stanley says. "This should be well received, but we suspect this is already fully priced in at current levels," analyst Rahul Anand says. The analysts' base case is that Rio Tinto provides clear, quantifiable targets for reducing operating expenses and capex across its portfolio. The aim would be to improve free cash flow by an average of US$500 million-US$1.0 billion annually over the medium to longer term. A bull case would involve Rio Tinto signalling a more than US$1.0 billion annual improvement in free cash flow, Morgan Stanley says. It has an equal-weight call on Rio Tinto. ([email protected]; @dwinningWSJ)

2208 GMT - There's a good chance that Australian pipeline operator APA upgrades its capex guidance, reckons Macquarie. APA has signaled some A$2.1 billion of growth-development capex over three years, excluding any M&A. Its latest project is the construction of the Brigalow Peaking Power Plant in Queensland. APA reiterated its capex guidance when announcing a deal with CS Energy for the Brigalow plant, but Macquarie sees it will be likely upgraded if progress is made in other areas. For example, Macquarie points to a potential extension of the Bulloo pipeline in Queensland, which cost around A$1 billion. It retains an outperform call on APA and A$9.23/share price target. APA ended Tuesday at A$9.18. ([email protected]; @dwinningWSJ)

2203 GMT - Minerals 260's resource upgrade was better than Bell Potter expected. Minerals 260 now estimates its Bullabulling Gold Project in Western Australia contains some 130 million tons of ore grading at 1.0 gram of gold per ton. That indicates the resource has some 4.5 million oz of gold. Analyst David Coates says that's an impressive result. "We conservatively estimate operating expenditure of A$20 million over this period, implying a discovery cost of A$9/oz," Bell Potter says. The Bullabulling project now screens as one of the largest undeveloped gold Resources on the Australian Securities Exchange "and, in our view, an attractive takeover target," the bank says. ([email protected]; @dwinningWSJ)

2200 GMT - Fletcher Building loses a bull in Citi as hopes fade for a rapid recovery in New Zealand's housing market. Interest rate cuts have helped to support activity, but risks remain. Citi worries that higher inventories may absorb any incremental demand for construction materials. It also points to "a growing 'build new' premium versus 'buy existing'" when it comes to homes. "We decrease our FY 2026/2027 Ebit by 7%/5% to reflect what we see as a more muted recovery," analyst Samuel Seow says. Citi downgrades Fletcher to neutral, from buy, while keeping its price target unchanged at NZ$3.50/share. Fletcher is down 0.9% at NZ$3.44 today. ([email protected]; @dwinningWSJ)

2138 GMT - Sky Network TV's share price has performed well over the past year, but Forsyth Barr still sees the risk-reward as attractive. Sky Network TV has a path to grow its dividend from NZ$0.30/share in FY 2026 to NZ$0.40 in coming years, analyst Ben Crozier says. This would represent a 16% gross yield on the company's current stock price. Forsyth Barr says the path to a NZ$0.40/share dividend is driven by Sky Network TV increasing sports prices at mid-single digits annually, and content cost inflation moderating. It must also meet expectations for its Discovery acquisition, and benefit from a modest cyclical recovery in advertising spending. Sky Network TV should also use part of its net cash position to reduce its share count, Forsyth Barr adds. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires