0253 GMT - Westpac's bears at Morgan Stanley are disappointed but unsurprised that the Australian bank still hasn't quantified the expected financial benefits of its multiyear tech overhaul. They tell clients in a note that it is unfortunate that there is still no roadmap for Westpac's path to its FY 2029 cost and return targets. The MS analysts acknowledge that the bank is making good progress on its simplification projects, but remain of the view that "a shift in operating conditions and the potential for earnings downgrades are currently more important share-price drivers." MS has an underweight rating and A$34.40 target price on the stock, which is up 0.65% at A$40.725. ([email protected])

0104 GMT - There's still "compelling risk-reward" in Australian lithium stocks, with the Middle East conflict likely to boost EV demand, say UBS analysts. UBS upgrades IGO to buy from neutral and reiterates buy ratings on Liontown and PMET Resources. It downgrades PLS to neutral from buy. UBS sees "the potential for another upcycle" in lithium, say the analysts. They also expect gold "to recover its safe haven/diversifier status." UBS's top picks among Australian gold stocks are Newmont and Genesis Minerals. It has buy ratings on both stocks. The bank also upgrades Evolution Mining to neutral from sell. ([email protected]; @RhiannonHoyle)

0035 GMT - Westpac needs more than its in-progress tech overhaul if it is to deliver on its cost target, Jefferies analyst Andrew Lyons warns. The lender's so-called Unite program is on time and on budget but Lyons points out that, with work to do, material execution risks persist. Westpac says it wants to bring its cost-to-income ratio closer to that of its peers in the medium term, but Lyon tells clients in a note that Unite is unlikely to deliver this uplift. He points to the existing "Fit-for-Growth" program, which targets efficiency across systems, processes and back office functions, as a potential route for improvement. Jefferies has a hold rating and A$35.66 target price on the stock, which is up 0.7% at A$40.76. ([email protected])

2348 GMT - Fenix Resources bull Bell Potter trims its target on the stock after the miner cautioned that diesel-fuel supply constraints are disrupting operations. "The ongoing conflict in the Middle East and associated rally in oil prices has a direct impact on costs (Australia's diesel terminal gate prices are up 86% since February 2026) and presents fuel availability risks across the broader mining and logistics sectors," the broker says. It lowers its target on Fenix to A$0.63 from A$0.67. It reiterates a buy rating. Fenix shares are down 4.6% at A$0.315, adding to Thursday's 7.0% loss. ([email protected]; @RhiannonHoyle)

2341 GMT - Kogan.com's potential spending to sustain sales and customer growth keeps Bell Potter analyst Chami Ratnapala cautious on the Australian online retailer despite a stronger-than-expected first half. Ratnapala acknowledges the ASX-listed company delivered sizeable beats to first-half revenue, earnings, profit and dividend expectations. However, she warns that earnings margins are highly sensitive to any investment needed to sustain growth. Marketing investment could be required in a challenging and competitive e-commerce landscape, she tells clients in a note. Bell Potter rolls forward its valuation and raises its target price by 15% to A$3.80. It keeps a hold rating on the stock, which is flat at A$3.66. ([email protected])

2317 GMT -- Catapult Sports' bull at UBS is cheered by what he reckons is a step-up in the athletic-tech provider's organic growth. Analyst Evan Karatzas tells clients in a note that the company's full-year outlook suggests it enjoyed US$8.4 million of incremental second-half annualized contract revenue growth. This represents a 17% on-year improvement and should support increased conviction in Catapult's medium-term growth prospects, Karatzas writes. The company sees annualized contract revenue as a key forward indicator of revenue. UBS lowers its target price 3.7% to A$6.45 on lower peer multiples but maintains a buy rating on the stock, which is down 2.7% at A$3.56. ([email protected])

2246 GMT -- Xero's bull at Citi sees the accounting-software provider's partnership with Anthropic as an incremental positive for the stock. While not expecting any disclosure of the partnership's unit economics, analyst Siraj Ahmed tells clients in a note that the collaboration is in line with Xero's strategy of using AI assistants as a distribution channel. While he wonders exactly what customer-facing changes might occur, Ahmed continues to see Xero's app ecosystem as an advantage. Citi has a last-published buy rating and A$144.80 target price on the stock, which is at A$72.40 ahead of the open. ([email protected])

2238 GMT - The price of steel in the U.S. and shares in the companies that produce it are diverging. Shares of major U.S. producers have fallen by roughly 15% on average over the past month, while U.S. hot rolled coil prices have continued to rise, says Jefferies analyst Christopher LaFemina. "The takeaway here is that U.S. steel share prices . . . have begun to reflect some sort of slowdown in economic growth despite positive quarterly earnings momentum," LaFemina says. He says stocks could be a leading indicator of how steel prices might fare should the Middle East conflict continue, hurting global growth. "But it could also imply good value in these equities if the war de-escalates and the impact of higher energy prices on global economic growth is limited." ([email protected]; @RhiannonHoyle)

2214 GMT -- Ord Minnett was impressed by Bubs Australia's strategy update. Still, it worries about how rising cost pressures will squeeze the dairy company's earnings. Analyst John Lawlor says key highlights of Bubs's strategy day were the introduction of its new executive leadership, the focus on growth and confirmation of FY 2026 guidance for revenues and Ebitda. "Part of the new strategy is a desire to establish U.S.-based sourcing and production which could be funded by a potential equity raise," Ord Minnett says. Still, its FY 2027 and FY 2028 Ebitda forecasts fall 10% and 20%, respectively, due to mounting cost pressures. "Given the current inflation issues, pending FDA approval and a potential equity raise, Bubs effectively remains in a holding pattern," Ord Minnett says. It retains an accumulate call. ([email protected]; @dwinningWSJ)

2207 GMT - Euroz Hartleys examines why shares of Australian gold miners have outpaced the drop in the gold price since the Iran conflict began. Gold has fallen some 13% to US$4,500/oz. Since Feb. 28, shares of ASX gold producers have fallen by an average 27%. Pantoro Gold and Northern Star Resources are down 44% and 41%, respectively, although this is partly due to production downgrades. The next three largest fallers are Capricorn Metals, Vault Minerals, and Regis Resources, notching stock declines of 31%-34%. "Their relative performance may reflect, in part, the larger open-pit weighting of some operations compared with peers, although the specific cost drivers vary by company," Euroz Hartleys says. Open pit sites often rely on diesel and are characterized by high waste-to-ore movement ratios. ([email protected]; @dwinningWSJ)

2159 GMT - Drinks-to-hotels group Endeavour loses a bull in Citi as consumer spending is squeezed. Citi downgrades Endeavour to neutral, from buy, and lowers its price target by 14% to A$3.70/share. "In the near term we are concerned about sales being adversely impacted by higher interest rates, petrol prices and higher inflation more generally putting downward pressure on household budgets," analyst Sam Teeger says. These may result in lower alcohol consumption and dining out, hurting Endeavour's retail and hotels divisions. Endeavour faces other headwinds, from an apparent structural decline in alcohol sales to higher freight costs. It may be difficult for Endeavour to pass on any cost rises to consumers, Citi says. Endeavour ended Thursday at A$3.40. ([email protected]; @dwinningWSJ)

2132 GMT - Jefferies is excited by Infratil's earnings from data centers. Infratil yesterday upgraded a forecast for Ebitdaf from its CDC data-centers business to A$680 million-A$720 million in FY 2027. That was up from a A$660 million projection and reflects a faster rampup of customer contracts, analyst Roger Samuel says. Infratil also signaled large potential customer wins that should drive a material step-change in its growth trajectory beyond FY 2026. Jefferies forecasts CDC's Ebitdaf to grow at a 40% compound annual rate over FY 2025-2028. "The presentation also highlighted a meaningful densification opportunity," Jefferies says. "New-generation Nvidia chips can operate at higher temperatures (up to 45 degrees Celsius), enabling CDC to monetize an additional 10% of capacity with minimal incremental capital, supporting upside to returns." It retains a buy call on Infratil. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires