0243 GMT - Australian 3D printer Titomic's planned relocation to the U.S. is aimed at enhancing its ability to tender for government work, Bell Potter analyst Stuart Howe says. Titomic, which already has a facility in Huntsville, Alabama, is "enjoying the tailwinds of a significant culture change and increased sense of urgency across the U.S. Department of War," Howe writes in a note. He tells clients that a meeting with Titomic's strategic advisory group indicated that U.S. aerospace and defense activity is at an inflection point as aging assets get updated, supply chain vulnerabilities are addressed, and new technology is developed. Bell Potter keeps a speculative buy rating and a A$0.50 target price on the stock, which is flat at A$0.215. ([email protected])

0012 GMT - AI-driven selling of Australian software stocks looks indiscriminate to Morgans analysts. Noting steep declines in shares of many local SaaS providers, the analysts lay out several reasons not to get swept away by fear that all incumbents will be hit hard. They tell clients in a note that "simply being 'able to vibe code' software isn't enough" for newcomers. Record data, metadata and tactical knowledge are also important, they write. AI capabilities actually mean that leading software companies can now work more efficiently on multi-year product wish-lists from customers, the Morgans analysts add. The problem, as the analysts see it, is that fair value is so opaque that investors are applying higher discount rates to stocks. ([email protected])

2355 GMT - Perpetual's sale of its wealth business to Bain Capital is on terms that look reasonable rather than overly attractive to the Australian investment manager, Citi analyst Nigel Pittaway says. Perpetual will sell its 139-year-old franchise to the private-equity provider for an initial A$500 million, but Pittaway points out that it will also incur A$30 million in costs plus a tax liability of at least A$45 million. On the other hand, he tells clients in a note that Perpetual could also receive earn-outs of up to A$75 million. He adds that the sale resolves a key issue by allowing Perpetual to pay off some debt. Citi has a last-published neutral rating and A$19.70 target price on the stock, which is up 0.7% at A$16.35. ([email protected])

2348 GMT - Collins Foods' bulls at UBS think that investors are waiting for results of its expansion in Germany before rewarding the Australian fast-food franchiser with a share-price rise. Keeping a buy rating on the stock, analysts Tim Plumbe and Evan Karatzas tell clients that Germany is the strongest performing region across Collins' business. With Collins acquiring eight more KFC restaurants, UBS analysts see potential for 7% upside to their existing medium-term EPS forecasts if the Australian company can keep expanding in line with its targets. UBS lifts its target price 3.1% to A$13.50. Shares are up 0.1% at A$9.87. ([email protected])

2252 GMT - Stockland loses a bull in Morgan Stanley, as speculation builds that Australia's central bank will raise interest rates several times this year. MS says possible changes to the capital gains tax discount and negative gearing for investors in property are additional headwinds to sentiment. Analyst Lauren A. Berry notes similar policies were suggested in 2018/2019, and led to an on-year fall of some 40% in residential pre-sales for Stockland and Mirvac. This year might be better as 2018/19 coincided with foreign buyers exiting the market. Still, MS says "the negative sentiment could manifest in lower pre-sales, leading to risks around settlement expectations in FY27 and less lucrative earnings growth." It notes consensus expectations are for settlement of 8,580 residential lots in FY27.([email protected]; @dwinningWSJ)

2245 GMT - It's a good time for Metro Mining CEO Simon Wensley to be in China negotiating prices for bauxite sales in the June quarter, says Shaw & Partners. That's because bauxite prices have been rising. Reports suggest that major exporter Guinea is considering implementing export controls on the commodity. "He is likely to see a more supportive environment for prices today than if he had commenced negotiations two weeks ago," Analyst Andrew Hines says of Wensley's China talks. Guinea accounts for about 70% of global seaborne supply. Shaw says any disruptions to Guinea supply would have a large impact on price. It draws parallels with 2024/25 when the bauxite price surged to US$130/ton after the removal of Guinea Alumina Corp's export licence. ([email protected]; @dwinningWSJ)

2206 GMT - Citi joins Lifestyle Communities bulls as the emergence of a big new shareholder stokes M&A speculation. A substantial shareholder notice on Friday showed that Hometown Australia has bought some 11.9 million shares of Lifestyle Communities. Citi estimates Hometown Australia is acquiring a 9.7% stake. It expects the stake acquisition will lead to M&A chatter resuming on Lifestyle Communities. "While we do see the uncertainty around margin recovery for Lifestyle Communities... we now upgrade to Buy given the stake acquisition and potential for renewed M&A prospects," Citi says. Lifestyle Communities ended last week at A$5.31, below Citi's A$5.60/share price target. ([email protected]; @dwinningWSJ)

2155 GMT - Ord Minnett upgrades Breville to buy, from accumulate, after the appliance maker's competitive position in the U.S. improved. Breville has been chosen as a primary partner of retailer Best Buy, which should result in additional shelf space for its products. Best Buy's decision to focus on fewer vendor relationships likely results in some of Breville's rivals losing access to its more than 1,000 store network. "For Breville, being chosen as a primary partner in the Small Domestic Appliance segment presents a major competitive advantage over its peers," analyst James Casey says. Ord Minnett keeps its A$37.20/share price target unchanged. Breville ended last week at A$27.50. ([email protected]; @dwinningWSJ)

2148 GMT - Defense equipment maker Electro Optic Systems has the right technology for the current times, says Ord Minnett. Iran's extensive use of Shahed attack drones and the expensive U.S. missile and guided rocket-based interceptor response are causing militaries to reassess their counter-drone capabilities. EOS on Friday said it has secured two new orders for its Slinger counter-drone Remote Weapon Systems. One contract is valued at US$42 million with a buyer in the Middle East, and another with an undisclosed U.S. defense contractor is worth US$3 million. Ord Minnett retains a speculative buy call and A$12.95/share price target on EOS, which ended last week at A$11.74. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires