0213 GMT - Auto-parts supplier Bapcor's discounting strategy looks like a downside risk to the Australian company's second-half guidance, Citi analyst Sam Teeger warns. He points out in a note that customers often pass on the cost of products to end consumers, which limits the benefits of the strategy. Bapcor's customers typically value things such as relationships, speed of delivery and inventory availability, he adds. Anyway, Teeger's biggest concern is Bapcor's balance-sheet gearing. Citi cuts its target price 26% to A$2.28 and maintains a neutral rating. Shares are down 1.6% at A$1.82. ([email protected])

0132 GMT - CAR Group keeps its bull at Bell Potter despite the recent pullback in high-multiple and tech stocks. Analyst Michael Ardrey makes no changes to his forecasts or valuation on the Australia-listed vehicle classifieds provider, telling clients that the stock still looks undervalued. He reckons that the stock's current valuation of 28 times 12-month-forward earnings is its lowest for two years. This fails to recognize the underlying investment case as adjusted earnings accelerate from FY 2027 amid easing margin headwinds. Bell Potter keeps a buy rating and A$42.20 target price on the stock. Shares are down 0.4% at A$32.24. ([email protected])

0039 GMT - Bapcor absolutely needs to deliver on its downgraded guidance if the auto-parts supplier is going to restore market confidence, Macquarie analysts reckon. With visibility low after two downgrades in less than two months, meeting guidance is critical to shore up confidence in its underlying earnings base, the analysts say in a note. It would also alleviate balance-sheet concerns after Bapcor acknowledged it was seeking to increase its leverage covenant with lenders. Macquarie cuts its target price 29% to A$2.05 and keeps a neutral rating on the stock, which is down 2.0% at A$1.8125. ([email protected])

0026 GMT - Coles' bulls at Macquarie feel pretty good about the stock after getting a closer look at the supermarket operator's key manufacturing facilities. The Macquarie analysts visited meat-processing, milk-processing, and meal-manufacturing facilities in Australia's NSW state. They tell clients in a note that operations at all three are indicative of Coles' focus on vertical integration and supply chain efficiency. One of the standout features, in their view, is the level of automation at the dairy facility. Macquarie keeps an outperform rating and A$26.10 target price on the stock, which is down 0.4% at A$21.70. ([email protected])

0018 GMT - Suncorp looks best placed among Australian insurers to benefit from falling property reinsurance pricing, according to Morgan Stanley analysts. The MS analysts tell clients in a note that property reinsurance prices will fall about 10%-15% on Jan. 1. They explain that this should lead to more options on aggregate covers and reinsurance capital, with Australian insurers among the largest buyers globally. They think that there are multiple ways in which Suncorp could benefit, including through a quota share that could release A$1.5 billion in capital to shareholders and improve return-on-equity. MS lifts its target price 1.0% to A$24.40 and keeps an overweight rating on the stock, which is up 1.3% at A$17.14. ([email protected])

0003 GMT - Bapcor's downgraded guidance still warrants caution in the eyes of Morgans analyst Jared Gelsomino. He tells clients in a note that the magnitude of the downgrade to the Australian auto-parts supplier's outlook suggests there are still risks despite management's confidence in a material second-half improvement. Then there's the question of the balance sheet, which Gelsomino says is causing concern. He thinks that gearing may have already exceeded the current lending covenant of three times earnings. Morgans cuts its target price on the stock by 29% to A$1.95. Shares are down 1.9% at A$1.815. ([email protected])

2358 GMT - It's unclear to UBS analysts whether auto-parts supplier Bapcor could uncover further legacy issues in its tools and equipment business. The Australian company has already flagged a A$15 million one-off impact from a business review, but UBS analysts warn clients in a note that they can't rule out the risk of further discoveries. They also see execution risk around second-half operational improvements necessary for Bapcor to meet its downgraded full-year guidance. UBS is under research restrictions on the stock. Shares are down 1.1% at A$1.83. ([email protected])

0953 GMT - British American Tobacco is making sustained progress, with strong awareness of the issues facing the tobacco industry, Interactive Investor's Richard Hunter writes in a note. Those include the decline in traditional product sales and reluctance from some to invest on ethical grounds, he adds. BAT is up against a provision of 6.2 billion pounds in Canada to settle legal claims--which have weighed on profitability--and regulatory headwinds in Australia and Bangladesh. These issues are front of mind for the company, which has reaffirmed guidance despite the challenges, Hunter writes. Shares are down 4.05% at 4,142 pence. ([email protected])

(END) Dow Jones Newswires