0443 GMT - Pro Medicus has never been better positioned despite its recent share-price dive, Morgans analyst Iain Wilkie reckons. Shares in the medical-imaging tech provider shed two-thirds of their value between July and February. However, Wilkie tells clients in a note that conversations with the company and industry contacts have reinforced his view that the business is executing well from a structurally strong competitive position. With consensus forecasts now reflecting lower expectations, he keeps a buy rating and target price of 210.00 Australian dollars on the stock. Shares are up 0.3% at A$160.495. ([email protected])

0420 GMT - Nine Entertainment's bull at Macquarie reckons the Australian media group is well positioned following the divestment of its regional TV assets. A note from one of the investment bank's analysts contends that the local advertising market may be approaching a cyclical low point, with interest rates expected to peak later this year and business confidence improving. "Assuming inflation does not materially worsen versus expectations, we are optimistic on an improving ad market in FY27," the analyst writes. They anticipate incremental high-margin revenues on the expectation that the government makes digital platforms pay for content. Macquarie cuts its target price by 8.7% to A$1.05 and keeps an outperform rating on the stock, which is down 1.1% at A$0.925. ([email protected])

0346 GMT - TPG Telecom's trading update leaves UBS analysts feeling a little more wary about the outlook for Australia's mobile operators. They point out in a note to clients that growth is largely coming from more value-focused offerings such as digital-only brands, as well as enterprise. With spectrum renewal costs looming, analysts Lucy Huang and Ailsa Lei wonder how successful operators will be at passing on costs to customers through price increases. The pair say that TPG is trading at an 18% discount to larger rival Telstra, but reckon that is justified by factors including its more price-sensitive customer base. UBS lifts its target price by 0.5% to A$3.97 and stays neutral on the stock, which is up 0.4% at A$3.715. ([email protected])

0307 GMT - Megaport's bull at Citi wonders whether the Australian connectivity and computing provider should focus more on its on-demand GPU pool than on large new contracts. Analyst Siraj Ahmed likes Megaport's move to create an on-demand GPU pool and thinks the floated payback period of between 16 and 22 months is conservative. Using the company's pricing, he thinks a period of 12 months is possible. Ahmed observes the large contracts create an annual recurring revenue headwind when they finish, and tells clients in a note that he sees the on-demand GPU pool return metrics as more attractive. Citi has a last-published buy rating and a A$15.65 target price on the stock, which is in a halt at A$16.61. ([email protected])

0135 GMT - BlueScope bull Jefferies upgrades earnings forecasts for the Australian steelmaker, citing a recent strong rally in spreads. The U.S. demand backdrop remains supportive, it says. That prompts a lift in its share-price target on BlueScope to A$36.00 from A$35.00. The bank keeps a buy rating. The better earnings outlook more than offsets the removal of an M&A premium, as more time passes without an update on the Steel Dynamics-SGH takeover bid, it says. "Mid-June could prove a catalyst with SGH free to revise its bid or walk away," says Jefferies. "Whatever the outcome, we see upside to FY27" estimates given favorable spreads, it says. BlueScope is up 4.9% at A$33.32. ([email protected]; @RhiannonHoyle)

0102 GMT - UBS lifts its earnings view for Treasury Wine Estates as some headwinds show signs of easing. Its FY26 EPS forecast rises by 1.4% while its FY27 outlook increases by 7.1%, although it remains below consensus expectations. The improved forecasts reflect a less pessimistic view of Treasury Wine's luxury Penfolds brand, partly because demand in China is no longer deteriorating. Analyst Shaun Cousins also says the Americas market remains challenged for Treasury Wine, but he is not as bearish about it as before. UBS raises its price target by 13% to 4.50 Australian dollars a share, and retains a neutral call. Treasury Wine is up 0.5% at A$4.13. ([email protected]; @dwinningWSJ)

0052 GMT - The latest assessment for the 2026-27 Australian winter crop looks average to Ord Minnett. Government forecaster Abares signals an east-coast crop of 23.8 million tons. That's down 27% on a year ago, but up 2.5% on the 10-year average. Analyst John Lawlor views the forecast as a significant positive for GrainCorp. That's because of concerns about a potentially disastrous forecast due to below-average rainfall across major growing areas through to May. There was also a heightened risk of an El Nino event and ongoing fertilizer cost and availability issues due to the Middle East. The crop will ensure solid FY27 volumes for GrainCorp, Ord Minnett says. "Additionally, increasing grain prices will see more of the near-record FY25 and FY26 volumes come out of on-farm storage and into GrainCorp's network." ([email protected]; @dwinningWSJ)

0031 GMT - UBS takes a rosier view on PLS Group's shares after upgrading its own lithium-price forecasts. Its target on the miner's stock rises to 6.75 Australian dollars from A$5.20. "But this is largely priced in and we retain a neutral," the bank says of its rating. With FY26 almost over, focus is shifting to PLS's FY27 guidance, UBS says. With the Ngungaju plant to ramp up shortly, UBS expects 1.05 million metric tons of spodumene concentrate with a 5.2% grade in FY27, at a free-on-board cost of A$590/ton. That is near consensus of 1.06 million tons at A$592/ton, it says. PLS is up 3.4% at A$6.77. ([email protected]; @RhiannonHoyle)

2358 GMT - A sharper housing downturn in Australia could weigh on consumer-industry earnings, says Morgan Stanley. It downgrades its view on the industry to cautious from in-line and says it continues to prefer staples over discretionary. MS expects Australian house prices to fall by 5%-10% and turnover to decline by 20%-30%. Tax changes are likely to discourage property investment at a time when rates remain restrictive, it says. "Falling house prices compound headwinds for discretionary retail, and the consumer more broadly," says MS. It cuts its share-price target on JB Hi-Fi to 66.50 Australian dollars from A$68.80 and Metcash to A$3.20 from A$3.40. Its target on Harvey Norman drops to A$4.70 from A$5.40, while Wesfarmers is cut to A$78.70 from A$79.30.([email protected]; @RhiannonHoyle)

2305 GMT - The decision by Australia's Fair Work Commission to abolish junior pay rates for 18-to-20-year-olds by 2029 is likely to add to wage inflation, says Jefferies. That's bad news for many retailers. Analyst Michael Simotas expects an additional 50 basis points of wage inflation over FY27-30. Some retailers will be less affected than others given existing enterprise agreements. Jefferies says Wesfarmers's DIY chain Bunnings is best-positioned because it already pays employees aged at least 18 years an adult rate. "Kmart, Target, Officeworks, Supercheap Auto, Rebel, BCF, Macpac, Woolworths, Big W, and Coles have existing enterprise agreements which pay employees 20 years or older an adult rate," Jefferies says. "BWS and Dan Murphy's pays all employees, regardless of age, an adult rate." ([email protected]; @dwinningWSJ)

0655 GMT - Bangkok Chain Hospital's outlook is likely to improve from 2Q, based on management's positive tone at an analyst meeting, UOB Kay Hian analysts say in a research report. Management updated that Thai and Middle Eastern patients are gradually returning after long holidays in Thailand and a slowdown in Middle Eastern patient traffic in April, the analysts note. Also, there should be no one-time expenses in 2Q like those in 1Q. The brokerage remains optimistic about the Thai hospital chain operator due to factors such as improving momentum of patient inflows. The brokerage has a buy rating and target price of 14.00 baht on the shares, which are 1.1% lower at 9.35 baht. ([email protected])

(END) Dow Jones Newswires