0212 GMT - GrainCorp still generates cautious optimism at Morgans despite its lack of near-term share-price catalysts. Analyst Belinda Moore acknowledges that the Australian grain handler's trading update was weaker than expected but nonetheless thinks that the stock has been oversold. She maintains its accumulate rating despite reducing her fiscal 2026 Ebitda forecast by 7% on lower grain receivals and export volumes. Target price falls by 11% to A$8.05. Shares are down 0.3% at A$7.11. ([email protected])

0106 GMT - The recent correction to Lovisa's share price lures new bulls at Morgan Stanley. Raising their recommendation to overweight from equal-weight, analysts Chenny Wang and James Bales tell clients in a note that recent volatility in the fashion-jewelry retailer's growth is transitory rather than structural. They see EPS rising 83% by FY 2028, supported by agility on product range and best-in-class supply chain execution. The pair view the de-rating as an opportunity to build positions in a competitively advantaged Australian retailer. MS trims its target price 9.5% to A$38.00. Shares are up 5.2% at A$30.34. ([email protected])

0056 GMT - Treasury Wine Estates' U.S. performance is a particular disappointment at Morgans given the amount of money the Australian vintner has spent there over recent years. Analyst Belinda Moore makes a second round of material downward forecast revisions in two weeks following the ASX-listed company's latest update. She warns that the U.S. market is weaker than expected, and flags what she sees as high uncertainty over its earnings outlook. Moore notes management's belief that the U.S. remains a significant opportunity, albeit requiring stronger execution. Morgans cuts its target price 14% to A$5.25. Shares are down 1.1% at A$4.895. ([email protected])

2234 GMT - IDP Education's announcement of a stricter accounting policy is welcomed by Macquarie analysts as a nice change from the negative updates they have come to expect from Australian companies in the days before Christmas. They tell clients in a note that the student-placement provider's revenue recognition changes mean that its revenues are now more closely aligned with cash flows. This materially reduces any concerns around the collectability of contract assets, the analysts write. They reiterate their neutral rating, with near-term volume and cash flow concerns preventing them from turning more positive. Target price remains at A$6.00. Shares are at A$5.69 ahead of the open. ([email protected])

2224 GMT - Australian stocks are set to rise at the open, paring their recent losses following gains by U.S. equities. ASX futures are up by about 0.5% ahead of Friday's session, suggesting that the S&P/ASX 200 will recover some of the 1.25% deficit compiled so far this week. The benchmark index is coming off a rise of less than 0.1%, which snapped a run of three straight declines. Ahead of the open, autoparts retailer Bapcor said its lenders had agreed to temporarily raises its debt headroom. In the U.S., the DJIA edged 0.1% higher following the release of shutdown-distorted inflation data. The S&P 500 rose 0.8%, and the Nasdaq Composite put on 1.4%. ([email protected])

2155 GMT - Changes to IDP Education's accounting policy are seen by its bull at Jefferies as enhancing the quality of the student-placement provider's financial reporting. Analyst Wei Sim welcomes the Australian company's stricter approach to revenue recognition, telling clients in a note that the negative impact on fiscal 2026 revenue is simply an issue of timing. IDP's revenue and earnings still look set to fall within its guidance ranges, while Sim adds that his forecasts were already below the midpoints. Jefferies keeps a buy rating and A$7.90 target price on the stock, which is at A$5.69 ahead of the open. ([email protected])

0639 GMT - Fortescue's acquisition of Alta Copper "constitutes a modest cash outflow for a small NPV uplift," says Jefferies analyst Mitch Ryan. Fortescue said Monday it will acquire the 64% of Alta it doesn't own in a deal that values the miner at roughly US$101 million. Alta's Canariaco project is relatively small copper-gold development that could enter production in the early to mid-2030s at an attractive cost, Ryan says. It "has minimal impact on the near term investment thesis," however, he says. Jefferies reiterates a hold rating on Fortescue, with a A$19.25 target. Fortescue ends 0.7% higher at A$22.61. ([email protected]; @RhiannonHoyle)

0555 GMT - Judo Capital gets upgraded to buy at Morgans despite the Australian business lender's consistent reminders to investors that it doesn't intend paying dividends any time soon. Analyst Nathan Lead raises his recommendation from accumulate, telling clients in a note that he expects stellar earnings growth to drive capital appreciation, especially across fiscal 2026 and fiscal 2027. With the bank ploughing retained capital into growing lending, Lead reckons the stock could be worth close to A$3.00 within five years. Morgans trims target price 0.1% to A$2.02. Shares closed 1.2% higher at A$1.705. ([email protected])

0408 GMT - Treasury Wine Estates' efforts to eliminate excess inventory sitting with its distributors scare off its bulls at Jefferies. Analysts Michael Simotas and Naveed Fazal Bawa welcome the strategy, which they think will rebase earnings and make the Australian producer more sustainable, but nonetheless downgrade their recommendation to hold from buy. Treasury Wine has shipped too much product in China and the U.S., which will take two years to address, they point out in a note to clients. They say the stock is cheap, but that management is reticent to consider the U.S. exit that would crystalize value. Jefferies cuts its target price 35% to A$5.20. Shares are down 1.9% at A$4.885. ([email protected])

(END) Dow Jones Newswires