0341 GMT - Treasury Wine Estates' recovery of inventory from its former California supplier doesn't seem to fill Jefferies analysts with confidence. Analysts Michael Simotas and Naveed Fazal Bawa tell clients in a note that repurchasing previously sold inventory is never positive, especially at the original sale price, as the Australian producer is doing. They point out that the subsequent sale of this repurchased inventory to a new California distributor will be at zero margin and effectively replace the profitable sale of new inventory. This will dilute Treasury Wine's second-half margins, they add. Jefferies has a hold rating and A$5.20 target price on the stock, which is up 4.4% at A$5.395. ([email protected])

0228 GMT - G8 Education's A$350 million goodwill impairment is seen by RBC analyst Wei-Weng Chen as an indication that the early education provider still faces headwinds including from cost-of-living pressures and wage rises. He points out that the Australian company's annual goodwill assessment is made on factors including projected occupancy of its centers, current and expected supply and demand, future fee increases, regulatory costs and wage expectations. G8 will pause its share buyback until it has greater clarity on occupancy and sector conditions, Chen adds in a note to clients. RBC has a last-published outperform rating and A$1.30 target price on the stock, which is down 17% at A$0.52. ([email protected])

0215 GMT - Treasury Wine Estates' agreement to repurchase stock held by its former California distributor introduces an element of uncertainty into the Australian producer's outlook, according to RBC analyst Michael Toner. He points out that Treasury Wine is expected to sell this inventory, which was previously valued at about A$100 million, to other customers in a market that has already identified as oversupplied. Toner observes in a note that it is hard to get a picture of Treasury Wine's U.S. depletions rate given the company's regional reporting structure. RBC has a last-published sector perform rating and A$5.70 target price on the stock, which is up 5.9% at A$5.475. ([email protected])

0210 GMT - Explosives and chemicals maker Orica is likely to maintain its Ebit growth momentum, Bell Potter analyst Joseph House says. Earnings growth is underpinned by cyclical tailwinds in mining and exploration markets, House says. The broker raises its target price on Orica to A$28.50 a share from A$26.00 a share. It reiterates a buy rating. "Ebit growth is expected to be supported by further premium product uptake, robust facility performance across AN (ammonium nitrate) and sodium cyanide supply networks, and commercial discipline," says House. He expects the company to prioritize an extension of its share buyback in the absence of any major dealmaking. Orica is up 0.3% at A$26.11. ([email protected]; @RhiannonHoyle)

2318 GMT -- Transurban has failed to materially increase the size of its project pipeline since the toll-road operator's last financial results in August, Macquarie analysts say. They tell clients in a note that the Australian company has ample balance-sheet capacity to invest in new projects, but most decisions are unlikely to be made until fiscal 2027. However, they do see American Legion Bridge in Maryland emerging as an opportunity, possibly in partnership with Ferrovial-owned Cintra. Macquarie trims its target price 0.6% to A$14.46 and stays neutral on the stock, which is up 1.0% at A$13.92. ([email protected])

Challenger's interest in acquiring Pepper Money raises as many questions as answers. Challenger is working with Pepper Group on a A$2.60/share deal for Pepper Money that would value its equity at A$1.16 billion. Challenger says it would own less than 25% of Pepper Money following a takeover. Morgan Stanley thinks acquiring Pepper Money broadly aligns with Challenger's non bank lending strategy. "But it's not clear if it expands Challenger's own asset origination platform," analyst Andrei Stadnik says. "We also think investors would like to see more rationale for the deal and/or considerations for alternative uses of capital." MS retains an equal-weight call on Challenger. ([email protected]; @dwinningWSJ)

2313 GMT - WiseTech Global's bull at Macquarie reckons that the logistics-software provider's AI-driven selloff has been considerably overdone. A note from one of the investment bank's analysts says that the Australian company's current share price implies that 76% of its total addressable market is cannibalized by AI. This looks like extreme pessimism, the note adds. The analyst tells clients that WiseTech is the most defensible ASX-listed tech stock against AI-driven disruption, with high upside from AI in cost reductions and direct sales. Macquarie cuts its target price 13% to A$94.00 and keeps an outperform rating on the stock, which is down 1.0% at A$48.81. ([email protected])

2309 GMT - CAR Group's continued investment in AI can't dispel worries at Macquarie over the potential valuation impacts of the tech. Analysts at the investment agree with the vehicle advertiser's management that AI capabilities accelerate near-term product development and cost efficiencies, but they remain cautious beyond that. They tell clients in a note that the Australian company is executing well on strategy and that near-term investment should support medium-term growth. However, uncertainty over the degree to which external AI providers can duplicate specialist classifieds capabilities and a lack of clarity on potential catalysts leave Macquarie cautious on valuation discovery. Macquarie cuts its target price 27% to A$28.50 and stays neutral on the stock, which is at A$26.91 ahead of the open. ([email protected])

2237 GMT - Region's stock should perform well today after the mall owner upgraded its annual earnings view, Jefferies says. Region now expects adjusted funds from operations of 14.1 cents/security in FY 2026. If achieved, that would represent growth of 2.9% on FY 2025. Region is also targeting funds from operations of 16.0 cents/security, up from prior guidance of 15.9 cents. "We would expect minor positive consensus FFO/security revisions following today's results," analyst Andrew Dodds says. Still, he notes Region is trading at a significant premium to non-discretionary retail peers despite offering a similar earnings growth outlook. Jefferies has a hold call and A$2.51/share price target on Region, which ended Monday at A$2.32. ([email protected]; @dwinningWSJ)

2219 GMT - Imaging-tech provider Pro Medicus's share price is plumbing 18-month lows after being caught up in the global software selloff. Morgans says investors concerned about AI threats misunderstand what Pro Medicus offers. It upgrades the stock to buy from accumulate. Analyst Iain Wilkie says AI will become one of the most powerful tools in healthcare. But for radiology it still needs stable, high-performance infrastructure to operate. "Pro Medicus provides that infrastructure, so, in many ways the acceleration toward AI potentially makes its business case more compelling as a product versus peers--at least in the medium term," Morgans says. It has a A$290.00/share price target on Pro Medicus, which ended Monday at A$161.17. ([email protected]; @dwinningWSJ)

2208 GMT - Minerals 260's bull at Euroz Hartleys cites gold producers such as Pantoro Gold and Ora Banda Mining as examples of what the company should be worth when its Bullabulling gold project ramps up production. Minerals 260 is currently worth A$920 million. In contrast, Pantoro and Ora Banda Mining have market values of A$1.9 billion and A$2.3 billion, respectively. Euroz Hartleys says Minerals 260 can grow output to 150,000 oz of gold annually, and potentially 200,000 oz. Its price target rises 19% to A$0.82/share, which would value the company at A$2.3 billion. That is "more appropriate given the production scale of Minerals 260 and takeover appeal," analyst Michael Scantlebury says. Minerals 260 ended Monday at A$0.445. ([email protected]; @dwinningWSJ)

2150 GMT - CAR Group's bull at Citi sees the vehicle advertiser's U.S. momentum as the key positive of its first-half result. Keeping a buy rating on the stock, analyst Siraj Ahmed points out that revenue growth at the Australian company's U.S.-based Trader Interactive unit was up 13% on a constant currency basis, which is up on the 11% on-year growth it showed six months earlier. Ahmed tells clients in a note that he sees earnings margins expanding in fiscal 2027, following what he thinks will be a slight contraction in the current fiscal 2026. He sees potential for higher cost growth in fiscal 2027, but probably alongside stronger revenue. Citi cuts its target price 8% to A$36.45 on peers' softer valuation multiples. Shares are at A$26.91 ahead of the open. ([email protected])

2147 GMT - CAR Group's bull at Jefferies reckons that the vehicle advertiser's investment strategy means it faces minimal risk of disruption from AI. Analyst Roger Samuel tells clients in a note that the Australian company's long-running investment in product and data has built a defense against AI and improved the experience for its users. He says the creation of a dedicated AI lab in Brazil is being conducted in a disciplined manner, and likes CAR's deepening of its entrenchment in dealer ecosystems through acquisition of management and planning software business in the U.S. and Brazil. Jefferies keeps a buy rating on the stock but cuts its target price 6.1% to A$38.50, citing the recent de-rating of peer stocks. Shares are at A$26.91 ahead of the open. ([email protected])

(END) Dow Jones Newswires