0153 GMT - The proposed sale of a stake in Glencore's Congo copper and cobalt assets would likely make the company "a more desirable acquisition target" to suitor Rio Tinto, Jefferies analysts say in a note. That is because a stake sale "would effectively reduce Glencore's geopolitical risk," Jefferies says. A deadline for Rio Tinto to make a formal offer for Glencore looms on Thursday. Jefferies expects an extension to be granted for talks, given any deal will be complex and both sides only recently hired advisors. Jefferies says it is "more likely than not" that a deal between the companies is announced this month, however. ([email protected]; @RhiannonHoyle)

0104 GMT - Australian interest-rate hikes such as the one the Reserve Bank announced this week are likely to hit consumer confidence and spending with the country's media advertisers, Macquarie analysts warn. They point out that media stocks tend to underperform in the lead-up to rate hikes, more of which could be on the way. They warn in a note that there is already low visibility on ad spend intentions into 2026, although operators are optimistic that volumes will improve. Macquarie's preferred sector pick is oOh!media, with the out-of-home market in which it operates viewed as a structural winner. ([email protected])

0102 GMT - Strength in the Australian dollar and a cyclical rotation into mining stocks could dampen offshore investors' appetite for shares in the country's big banks, Macquarie analysts say. They tell clients in a note that offshore investors remained the primary net buyers of Australian bank stocks over the past year at a record A$8.8 billion. However, internal flows data at Macquarie suggests that investors have generally been net sellers of banks so far in 2026. Some domestic selling could be pinned to profit-taking on ANZ's recent rise, they add. ([email protected])

0009 GMT - Pinnacle's bull at Macquarie sees continued scope for accretive M&A following the Australian investment manager's acquisition of London-based Pacific Asset Management. The latest accretive acquisition further supports Pinnacle's international ambitions and leaves about A$110 million that could be directed at further deals, a Macquarie analyst writes in a note. The analyst tells clients that Pinnacle's 1H underlying profit was 2.3% stronger than they had forecast, driving EPS upgrades of up to 3% through FY 2029. Macquarie trims its target price 4.9% to A$25.25, reflecting factors including an updated discount rate, and maintains an outperform rating. Shares are up 4.4% at A$17.95. ([email protected])

0008 GMT - Shaw & Partners is upbeat about Retail Food Group's plans to open its first Firehouse restaurant in FY 2026 and build its footprint from there. Retail Food wants 15 stores within three years. It will initially own each Firehouse outlet and invest US$12 million to start growing the business. The longer-term goal is 165 stores over 10 years, some franchised. "Firehouse has a unique selling proposition-- meaty subs, proprietary steaming process, Texas flavor," analyst Larry Gandler says. "Subway, with over 1,200 stores, is believed to have over 50% of the market so the time may be right for a major challenger." ([email protected]; @dwinningWSJ)

2333 GMT - Xero's bull at Macquarie thinks the stock is fundamentally mispriced given factors that include the increasing monetization of its AI capabilities. A note from one of the investment bank's analysts highlights the productivity benefits that the accounting software provider's customers are already enjoying, and flags Xero's ability to charge for AI services as a key catalyst for a rerate in the next 12 months. Maintaining an outperform rating on the software-accounting provider, the analyst raises EPS forecasts on increased confidence in Xero's Melio payments unit. Macquarie lifts its target price 1.5% to A$233.80. Shares are down 13% at A$83.88. ([email protected])

2319 GMT - Morgans raises target prices on Australian gold producers following bullion's January rally. The broker says it remains bullish on gold's outlook despite a recent correction. Key structural drivers, including persistent inflation risk, elevated geopolitical uncertainty and efforts by central banks to diversify reserves, remain firmly intact, Morgans says. It raises its target on Newmont to A$190.00 from A$162.00 and adjusts its rating to buy from accumulate. Its target on Northern Star rises to A$33.00 from A$26.00 and the stock was upgraded to buy from hold. Newmont is up 1.4% at A$167.04, and Northern Star is up 5.7% at A$28.41. ([email protected]; @RhiannonHoyle)

2315 GMT -- Xero still needs to demonstrate an ability to accelerate U.S. subscriptions growth if it is to turn Jefferies analyst Roger Samuel more positive on the stock. Samuel points out that the accounting software provider's shift toward payments in the U.S. exposes it to a model with less recurring revenue than its core subscription business. Payments' performance is linked to economic cycles, he tells clients in a note. Xero's Melio payments unit is far more profitable on a per-customer basis, but its cyclical nature makes it lower quality, he adds. Jefferies cuts its target price 26% to A$100.70 and keeps a hold rating on the stock, which is down 12% at A$84.15. ([email protected])

2236 GMT - Citi sees uranium prices rising, supported by lower mine supply from Kazakhstan and Africa, and increasing utility demand. It raises its 0-3 month forecast by $25 to $105/pound. It raises its 6-12 month forecast, also by $25, to $125/pound. Spot uranium was last at $94/pound. Citi also revises higher its other price forecasts through 2027. It projects an average price of $131 next year, up $21 on its earlier forecast. "Financial speculators, including Sprott Physical Uranium Trust have intensified its activity in the recent period with substantial fundraising amounts and uranium procurement on the spot market," Citi says. ([email protected]; @RhiannonHoyle)

2210 GMT - The key drivers that underpin Shaw & Partners's positive view of gold remain in place, despite the precious metal's price rising by 73% from its 52-week low nearly a year ago. Analyst Andrew Hines points to rising U.S. government debt, global central bank purchases and ongoing geopolitical risks. He believes the appointment of Kevin Warsh as incoming Fed chairman means U.S. interest rate cuts are likely. Shaw raises its 2026 gold and silver price forecasts by 54% and 32%, respectively. That drives higher price targets on many Australian precious metals stocks, including Genesis Minerals, Boab Metals, and Ramelius Resources. "Our view of consensus gold price forecasts sees significant upgrades throughout the rest of the year and strong earnings support for gold equities," Shaw says. ([email protected]; @dwinningWSJ)

2129 GMT - Commonwealth Bank of Australia is likely to keep pushing its dividend payout ratio toward the top end of its 70%-80% target range, says Jefferies. That's despite payout ratios among Australian banks being too high, and likely to reset lower over time. Analyst Andrew Lyons says CBA's capital position is strong. Also, CBA's actual payout ratio is closest to its sustainable level. "Furthermore, we will be keen to see whether the Board seeks alternative methods of returning surplus capital to shareholders," Jefferies says. CBA's share price has fallen 14% to A$153.08 since early November. But the company hasn't restarted its on-market share buyback. Jefferies has an underperform call and A$139.60 price target on CBA. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires