0442 GMT - The length of Pro Medicus's new contracts is seen as good news at RBC Capital Markets. Analyst Jackson Lee reminds investors that TidalHealth agreed to a seven-year contract, and that Allegheny stuck to a five-year term for its renewal. He writes in a note to clients that the duration of both represents a step forward in debunking the widespread narrative over AI disruption. Lee writes that neither company has shown signs of seeking a shorter-term contract, which would have kept open the option of exploring AI native alternatives. RBC has a sector-perform rating and A$195.00 target price on the stock, which is up 8.1% at A$142.95. ([email protected])

0427 GMT - ARB's comment that it is "investing more in engineering than ever" generates enthusiasm at Citi. Analyst Sam Teeger believes the ASX-listed auto-accessories supplier has underinvested in engineering and says any increased spending on this front is music to his ears. However, he warns clients in a note that it may take time for any increase in engineering investment to drive a meaningful lift in sales. Citi has a last-published neutral rating and a A$17.40 target price on the stock, which is up 0.7% at A$19.39. ([email protected])

0322 GMT - Morgan Stanley wonders about the durability of DDR4-driven earnings growth in Sims's SLS electronics recycling division. The bank's China Semiconductors team recently turned more constructive on DDR4 memory-chip prices because of tighter supply conditions and more resilient legacy memory demand, it says. "While this supports near-term earnings upside for SLS, we still view current earnings as pricing-sensitive and therefore unlikely to represent a clean through-cycle earnings base," MS says. Still, it upgrades Sims to equal weight from underweight and raises its share-price target to A$24.00 from A$15.50. It cites near-term support for SLS earnings from DDR4 prices, among other factors. Shares are up 0.9% at A$27.07. ([email protected]; @RhiannonHoyle)

0137 GMT - Virgin Australia gets a new outperform rating at RBC, albeit with one significant caveat. Initiating coverage of the stock, analyst Owen Birrell tells clients in a note that the ASX-listed airline is likely to remain focused on margin improvement and shareholder returns as it operates in what he calls a rational two-player market. As such, the stock looks undervalued to Birrell. However, he warns investors to be aware of the stock's low liquidity. He says this could represent heightened risk if market conditions deteriorate, especially with Virgin Australia's value-conscious customers potentially more sensitive to an economic downturn. RBC puts a A$3.50 target price on the stock, which is down 1.45% at A$2.72. ([email protected])

0134 GMT - Greatland's approval of the Havieron gold-copper project "should mark the start of the stopwatch more so than the removal of any residual regulatory risks," says MA Financial, noting the miner had been expected to green light the investment. The asset manager says it sees little funding risk given Greatland's current balance sheet and the availability now of a corporate debt facility. However, spending at Havieron--combined with a modest production slowdown at Greatland's Telfer mine--is anticipated to cause a near-term decline in cash flow. "For generalist investors focused on these metrics, we expect this to weigh on share-price performance relative to peers offering stronger near-term production growth or lower capital intensity," says MA. It has a sell rating and A$12.10 target on Greatland. Shares are up 2.5% at A$13.99. ([email protected]; @RhiannonHoyle)

2330 GMT - Australian property's appeal as an investment has been dented by the federal government's tax changes, including to negative gearing. UBS assesses what asset classes could benefit as investors shop around for alternatives to residential homes. "Investors targeting growth assets with a bias for elevated leverage will now find greater appeal in replicating a negatively geared strategy in other asset classes which offer growth," strategist Nic Guesnon says. UBS think flows into fixed income and higher dividend yielding listed equities, including franking credits, should increase. Other structured financial products like annuities and insurance bonds, which offer a flat 30% tax rate, should also benefit, UBS says. ([email protected]; @dwinningWSJ)

2321 GMT - Insurance Australia Group remains Macquarie's pick of local insurers after it cleared more than half of its trade credit risks. IAG's comment that its settlement with Greensill Bank will not have a material impact on its financial position is interpreted by one of the investment bank's analysts as an indication that its net exposure is in the low tens of millions of dollars. The analyst writes in a note that IAG will likely book the cost with net corporate expenses, with no impact on its margin guidance. It is unlikely to affect IAG's final dividend, the note adds. Macquarie keeps an outperform rating and A$9.00 target price on the stock, which is at A$7.66 ahead of the open. ([email protected])

2311 GMT - Ord Minnett elevates GrainCorp to buy, from accumulate, following heavy rain along Australia's east coast. Analyst John Lawlor says the rain underwrites a FY27 winter crop. He notes that in mid-May significant areas of northern New South Wales and Queensland didn't appear to have sufficient soil moisture profiles to plant. At the time, the weather forecast suggested a dry winter and the chance of El Nino. "However, the relieving rains of the past two weeks have washed away these fears, and while the FY27 crop is likely to be smaller than FY26, it is now unlikely to be a disaster," Ord Minnett says. "This makes the 21% retracement in Graincorp's share price since May 14 seem a significant overreaction." Its price target stays at A$7.25/share. GrainCorp ended Friday at A$4.93. ([email protected]; @dwinningWSJ)

2302 GMT - Jefferies lists what it needs to see before turning more positive on Mirvac. The obvious catalysts are signs of an improved housing cycle, easing construction cost inflation, upward trending auction clearance rates and lower borrowing costs, analyst Andrew Dodds says. Jefferies starts coverage of Mirvac at hold with a A$1.82/share price target. Mirvac ended last week at A$1.69. Jefferies says its analysis seeks to answer a key question: can Mirvac improve its return on invested capital and generate a higher return on equity to sustain EPS growth over FY26-28 and drive a re-rate? "We believe the answer is yes, but want to see a more constructive macro outlook first," Jefferies says. ([email protected]; @dwinningWSJ)

2248 GMT - Ord Minnett is happy with the price paid by Amplitude Energy for the Artisan natural-gas field. Amplitude is acquiring Artisan from Beach Energy for A$58.3 million upfront and a production royalty of A$3.75/per gigajoule. "In our view, this is a fair price to pay for increased confidence in the growth outlook and is comparable with the development costs for offshore wells (but without the exploration risk)," analyst Tim Elder says. The Artisan acquisition effectively underwrites the East Coast Supply Project. Ord Minnett expects the upfront consideration will be easily funded from the company's available debt capacity of A$345 million. "We expect a re-rate on future exploration success (Juliet in July-August) and as Amplitude's progresses toward gas production growth," Ord Minnett says. It retains a buy call on the stock. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires