0308 GMT - Catapult Sports' bull at Bell Potter sees the chance of an earnings beat when the athletic performance-tech provider reports its annual result next week. Analyst Chris Savage expects a result in line with or slightly ahead of the trading update issued in late March. He points out that the Ebitda implied by the Australia-listed company's guidance is slightly ahead of consensus, while his forecast is about 0.4% ahead. He expects Catapult's guidance for fiscal 2027 to be the same as issued for the past two fiscal years: strong growth in annualized contract value with low rates of churn. Bell Potter trims its target price by 5.3% to 4.50 Australian dollars on lower tech-sector multiples and keeps a buy rating. The stock is down 0.2% at A$3.095. ([email protected])

0221 GMT - Megaport's bull at Macquarie says revenue at the connectivity and compute provider is improving in both predictability and quality. Assessing the Australian company's new US$182.9 million contracts, one of the investment bank's analysts tells clients in a note that its compute and storage contracts are lower churn and higher margin than those related to connectivity. The analyst sees upside from potential contract extensions, referring to Megaport's announcement that two of the contracts are for initial three-year terms. The note adds that Megaport's share price has implied average annual sales growth of 18%, which the analyst reckons is too low. Macquarie raises its target price 13% to A$26.30 and keeps an outperform rating on the stock, which is up 3.4% at A$13.005. ([email protected])

0148 GMT - Megaport's US$300 million Latitude.sh acquisition is beating expectations at Morgan Stanley. The investment bank's analysts are pleasantly surprised by the cadence of new contract wins from the compute provider, telling clients in a note that it supports the view that Megaport can extend beyond connectivity and into contracted artificial intelligence infrastructure. This in turn generates upside risk to medium-term revenue and earnings expectations, they write. Megaport's new compute contracts shift the key debate from demand validation to execution and returns on invested capital, they add. MS lifts its target price 39% to A$12.50 and stays equal-weight on the stock, which is up 4.2% at A$13.11. ([email protected])

0123 GMT - Xero's bull at Macquarie says shares in the accounting-software provider are fundamentally mispriced, with the company's U.S. growth at an inflection point. A note from one of the investment bank's analysts points out that organic U.S. growth is accelerating, while its bill-pay unit is also showing strong momentum. This is being delivered with minimal go-to-market integration and ahead of Xero's planned U.S. brand investment. The analyst believes that AI distribution partnerships present upside, with adoption metrics already validating this narrative. Macquarie raises its target price 5.5% to A$235.80 and keeps an outperform rating on the stock, which is up 9.0% at A$80.29. ([email protected])

2259 GMT -- GrainCorp's bull at Jefferies is prepared to look through the grain handler's near-term challenges. GrainCorp's 1H revenue beat was accompanied by evidence of a margin squeeze caused by an oversupply of grain. That left 1H earnings broadly in line with forecasts. It also points to a softer-than-expected 2H and FY 2027, says analyst John Campbell. Still, he highlights the medium-term appeal of GrainCorp's stock, noting management had reaffirmed guidance and farm-input disruptions from the Middle East conflict look to have stabilized. Other attractions include GrainCorp's active share buyback program. Jefferies retains a buy call on GrainCorp, while cutting its FY 2026-2028 EPS forecasts by 9-18%. Its price target falls 3.8% to A$7.50/share. GrainCorp ended Thursday at A$5.38. ([email protected]; @dwinningWSJ)

2251 GMT - HMC Capital hasn't formally withdrawn a medium-term target of A$50 billion of assets under management. But the shift in its language to "Simplify to Scale and Strengthen" suggests fundraising challenges, says Jefferies. HMC has employed experienced individuals to manage and grow newly launched strategies, but a lack of a track record under the HMC brand has likely been a barrier for new raisings, says analyst Simon Fitzgerald. "Importantly, the strategy reset appears better aligned with shareholder value creation, including improvements in reporting standards," Jefferies says. It retains a "buy" call on HMC Capital, but cuts its price target by 18%, to A$3.40/share. HMC ended Thursday at A$3.01. ([email protected]; @dwinningWSJ)

2245 GMT -- Continued concern over the pace and potential scale of AI-driven disruption keeps Jefferies cautious on Xero despite what analyst Roger Samuel says is a strong operating performance. Maintaining a hold rating on the stock, Samuel tells clients in a note that the accounting-software provider's annual earnings were 2% above the consensus forecast and that Xero's fiscal 2027 guidance helps make its targets for the subsequent year look attainable. However, Samuel thinks the integration of Anthropic's Claude with multiple providers including Xero levels the playing field for all SaaS brands. This means Xero needs to keep spending on brand awareness, he warns. Jefferies cuts its target price 9.2% to A$77.00. Shares are at A$73.68 ahead of the open. ([email protected])

2245 GMT - Thursday's federal court decision wasn't as bad for supermarket chain owner Coles as it might have been, suggests Jefferies. The court found Coles raised prices of 245 products included in its Down Down promotional campaign too early. It needed a so-called minimum price establishment period of 12 weeks before promoting products in the campaign. For doing that the court found the Down Down tickets misleading. However, it also found the price rises were commercially justified. Analyst Michael Simotas called the decision "negative but balanced," with the court noting Coles may have been competitively disadvantaged had it not acted. "This may influence the determination of penalties and soften consumer backlash," Jefferies says. "With minimum price establishment period now set, the field is now level and we expect the industry to remain rational." ([email protected]; @dwinningWSJ)

2238 GMT - It's too early to turn bullish on car parts retailer Bapcor, signals Ord Minnett. Bapcor's turnaround appeared to gain traction in the two months through April, with all business segments returning to sales growth. However, Bapcor is being stung by higher interest rates, fuel and freight costs. Suppliers are moving to raise prices. That's tempering progress, Ord Minnett says. Bapcor lowered guidance for FY26 underlying Ebitda to A$144 million-A$150 million. That is 3.3% below Ord Minnett's forecast. "A recovery to historical profitability levels would represent material earnings upside," analyst James Casey says. "However, given the lack of earnings stability, we maintain our hold recommendation." Bapcor ended Thursday at A$0.42. ([email protected]; @dwinningWSJ)

2233 GMT -- A hat-trick of concerns appeared to drive GrainCorp's 14% share-price fall on Thursday, suggests Ord Minnett. GrainCorp's 1H result was solid. However, GrainCorp reported a core cash position of just A$163 million, down from A$321 million at end-September. Analyst John Lawlor says ongoing farm-input disruptions from the Middle East conflict and a questionable outlook for the FY 2027 crop due to poor weather conditions also caused some skittishness. Ord Minnett says it's less concerned about the cash position. It believes this will return to FY 2025 levels by year-end. It also says there's enough fuel and fertilizer for the FY 2027 crop. The lead concern is forecast rainfall having a significant effect on next year's crop volume, Ord Minnett says. It retains an accumulate call on GrainCorp. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires