0334 GMT - Australia's 4.75% increase to the minimum wage bolsters the case for the central bank to raise interest rates again in the September quarter, according to Capital Economics' Abhijit Surya. The senior APAC economist is sticking to his forecast of one more 25-basis-point rise, with market pricing pointing to August as the most likely time. Surya concedes that the direct impact of the minimum-wage increase will be modest, but he points to Reserve Bank of Australia analysis suggesting that such decisions influence pay settings elsewhere. It is looking more likely that overall wage growth will overshoot the RBA's expectations, he adds. ([email protected])

0203 GMT - Datt Capital's chief investment officer says it's good to see activist Elliott on Northern Star's register. Emanuel Datt says Northern Star's board, while "collectively well-credentialed," lack the deep "bench strength" and mining experience commonly seen at comparable miners such as Evolution. "If shareholder returns have underperformed in a generational gold price bull run, it is worth asking what may occur should the gold price mean revert back towards historical norms," Datt says. A former shareholder of Northern Star, Datt Capital sold its stake shortly after the miner agreed to buy De Grey in late 2024. Datt says he expects any transaction or restructure to take time. Shares are up 11% at A$20.48. ([email protected]; @RhiannonHoyle)

0013 GMT - Australian bank valuation multiples look likely to keep falling, Morgan Stanley analysts warn. They observe that the average multiple across the big four banks of Commonwealth, Westpac, NAB and ANZ fell to 18.5X 12-month forward earnings by the end of May, down from 19.2X a month earlier. They tell clients to expect a further de-rating due to higher interest rates, an economic slowdown and the impact on credit demand from changes to property-related tax concessions. Westpac and NAB look most vulnerable in the near term, they add. Given the challenges, the MS analysts are cautious on banking at an industry level. ([email protected])

0009 GMT - Scentre gets a new bear in Macquarie after the mall owner's shares rallied more than 10% from a low reached at end-March. Macquarie says the stock now trades at a 9.3% premium to pro-forma net tangible assets of A$3.45. When separating out the highest-quality malls, Macquarie concludes that Scentre's rump portfolio is at a higher risk of asset devaluations. "We assume 44-69 basis points of capitalization rate expansion," Macquarie says of the rump portfolio. "Combined with income growth of 4.0-4.5% (this) equates to an average 4.9% decline in asset value." Macquarie downgrades Scentre to underperform from neutral, taking the view that its earnings momentum is priced in. Scentre is down 4.1% at A$3.615. ([email protected]; @dwinningWSJ)

0004 GMT - Big downgrades to FY26 consensus earnings estimates are likely for Lendlease, says Morgan Stanley. Heading into this week consensus forecasts were for a 315 million Australian dollars Ebitda loss in Lendlease's Capital Release Unit in FY26. Those forecasts included the A$284 million loss reported for 1H. On Monday, Lendlease said it has agreed to sell the Milano Santa Giulia mixed-use development in Milan, or MSG North, for a A$175 million operating loss. Analyst Simon Chan says this means consensus earnings are likely to fall materially. "If we think about the total net profit for the stock, Visible Alpha consensus is currently -A$137 million for FY26, that looks too high if MSG were to be factored in," MS says. ([email protected]; @dwinningWSJ)

0003 GMT - Australian broadband challenger Superloop will likely take a conservative view of its annual earnings prospects at its investor day this week, according to its bulls at UBS. The investment bank's analysts see upside risk to Superloop's A$112 million-A$120 million FY 2026 Ebitda guidance, but nonetheless expect it to be reiterated rather than raised. UBS forecasts A$116 million, compared with consensus of A$118 million. The UBS analysts tell clients in a note to expect a solid trading update at the investor day, with the consumer business supported by increased take-up of high-speed plans. UBS places its buy rating and A$3.50 target under review. Shares are down 1.0% at A$3.465. ([email protected])

2320 GMT - Shaw & Partners sticks with its "buy" call on PlaySide Studios despite the loss of a key deal with Meta Platforms. PlaySide yesterday said Meta will terminate its outsourced development contract with the company, effective end-July. This will result in the loss of A$4 million in FY27 revenue. In response, Shaw cuts its FY27 revenue forecast by 38%. "While this outcome is clearly disappointing, we continue to see value in PlaySide's owned IP portfolio, including MOUSE and Dumb Ways to Die, together with upcoming titles such as Game of Thrones and Dew," says analyst Jules Cooper. Shaw's price target falls 36%, to A$0.28/share. PlaySide ended Monday at A$0.155. ([email protected]; @dwinningWSJ)

2306 GMT - Paragon Care's profit warning costs it a bull. Paragon Care now expects FY26 revenues of A$3.7 billion and Ebitda of A$95 million-A$100 million. That forecast includes a three-month month contribution from Haju Medical. Bell Potter notes Paragon Care's prior guidance of A$97 million-A$107 million excluded Haju Medical. "We estimate across the board inflationary pressures in the core Australian business have ripped up to A$4 million in earnings out with little to no means to pass on these costs to customers in the short term," analyst John Hester says. His FY26 and FY27 EPS forecasts fall by 10% and 18%, respectively. Bell Potter downgrades Paragon Care to hold, from buy, and cuts its price target by more than 40% to A$0.17/share. Paragon Care ended Monday at A$0.16. ([email protected]; @dwinningWSJ)

2301 GMT - For UBS, Dexus is stuck in the "too hard" basket, despite trading at a 37% discount to net tangible assets. Reasons for caution include the lawsuit involving Australia Pacific Airports Corp. The court recently dismissed Dexus's claims and UBS thinks the case could stretch well into FY27 if Dexus appeals the decision. Investors will be watching whether those APAC shareholders represented by Dexus will be forced to sell their shares. Also, Dexus's funds from operations are challenged and a buyback program is unlikely to offer meaningful support, UBS says. And there are still questions about labor reliability, timelines and construction costs for Dexus's Waterfront Brisbane project, analyst Cody Shield says. "Of the large-cap A-REITs offering exposure to the office recovery thematic, we have a strong preference for GPT," UBS says. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires