0454 GMT - Pro Medicus's latest contract renewal shows that customers are expanding usage rather than cutting deal lengths, RBC analyst Jackson Lee says. Some investors had worried that customers of companies including the Australian medical-imaging tech provider would try to shorten contracts to preserve the option of switching to AI-driven alternatives. However, Lee writes in a note that the A$16 million renewal with Ohio State University Wexner Medical Center was for an unchanged five years. The center is also taking up new product modules, he adds. RBC has a last-published sector perform rating and a A$195.00 target price on the stock, which is down 0.6% at A$158.74. ([email protected])

0446 GMT - Australia's economy will grow more slowly this year than the Reserve Bank expects, according to Morgan Stanley equity strategists. With March-quarter growth having landed a touch below expectations, they see domestic demand decelerating over the rest of 2026 under the weight of interest-rate hikes, tax changes and energy costs. They write in a note that housing and consumption will bear the brunt of a slowdown in growth to 1.2% by the end of the year, from 2.6% in 2025. ([email protected])

0420 GMT - Lottery Corp's new strategy appears to prioritize growth over cost savings in the near term, according to its bulls at UBS. The investment bank's analysts take stock of the Australian lottery operator's strategy day, and draw investors' attention to its comment that it remains committed to "cost growth below normalized revenue growth." The analysts add that lowered fiscal 2026 guidance for operating expenses of between 300 million Australian dollars and A$310 million doesn't include benefits from Lottery Corp's new operating model. UBS keeps a buy rating on the stock and trims its target price by 0.8% to A$6.15. Shares are up 0.7% at A$5.195. ([email protected])

0410 GMT - Strong annual recurring revenue growth from Megaport's original compute service may be partly driven by industry price increases, UBS analysts reckon. In a note to clients, they say growth above 40% is good to see, but they suspect elevated memory pricing is playing a role. Elsewhere in the business, they think the size of the investment and timeline for Megaport's creation of an on-demand GPU pool implies annual Ebitda of between A$191 million and A$263 million at full deployment. UBS doesn't have a rating or target price on the stock due to its role in Megaport's latest capital raise. Shares are halted at A$16.61. ([email protected])

0352 GMT - Qantas Airways' bulls at Jarden reckon the carrier could be winning share of Australia-North America routes. The investment bank's analysts parse data from aviation intelligence tool Diio Mi to establish that the number of Australia-North America seats provided across all carriers has declined by 1.2% over the past year. However, they think Qantas's share will be at 42% by late 2026, compared with an average 41% over the past three years. In a note to clients, the analysts say they can see the Australian airline gaining share from United Airlines. Jarden keeps a buy rating and a A$11.25 target price on the stock, which is down 0.6% at A$9.105. ([email protected])

2354 GMT - Shares in Northern Star have climbed since activist Elliott disclosed a more-than A$1 billion stake in the gold stock. But Jarden thinks "the initial investment thesis lacks ideas for an operational turnaround." Elliott is "simply suggesting the NST Board should be open to takeover approaches," Jarden says. It keeps an underweight rating. Its target on the stock falls to A$21.60 from A$22.30 after an update to Northern Star's reserves and resources. While the update includes more ounces, it does so at higher gold-price assumptions. Jarden is also surprised by the extent of the reduction to Hemi's reserves. "The focus for Hemi now turns to key unknowns (capex and schedule), which we expect to continue to overhang NST until officially updated," it says. Northern Star last traded at A$21.71. ([email protected]; @RhiannonHoyle)

2344 GMT - Morgan Stanley reckons Australian home prices could fall by 5% as a result of tax changes introduced by the federal government. Investors in existing property make up a third of new housing demand. But their property bets have been scrambled by the removal of negative gearing on existing homes and changes to capital gains tax discounts. "The new equilibrium is likely to see higher rental yields, lower leverage, and a new build price premium," strategist Chris Read says. ([email protected]; @dwinningWSJ)

2316 GMT -- Supply issues are denting car parts retailer ARB's earnings outlook. Weak sales in key vehicle categories prompt Ord Minnett to downgrade its earnings forecasts for ARB by 4.2% in FY26 and by 3.6% for FY27. "ARB's calendar year-to-date sales remain below the prior corresponding period, impacted by inconsistent manufacturer supply and elevated fuel prices, which will weigh on demand for ARB's Australian Aftermarket operations in 2H26," says analyst James Casey. Still, Ord Minnett stays bullish about ARB. It views the longer-term outlook as positive, with new vehicles and products being released globally. Earnings growth will be fanned by new and renovated stores and further expansion overseas, the bank says. Its price target falls 10% to A$27.80/share. ARB ended Wednesday at A$18.64. ([email protected]; @dwinningWSJ)

2304 GMT - Fuel refiner and marketer Ampol is effectively conducting a share buyback by settling the equity component of its EG Australia acquisition in cash, says Macquarie. It says Ampol's decision is equivalent to a A$315 million buyback at A$34.28/share. In effect, Ampol is returning A$0.80/share to its shareholders. "There is signal in this," Macquarie says. It suggests a rising corporate valuation, which may capture the likelihood of policy reforms ahead. It also points to 2Q earnings momentum, given it implies Ampol's gearing would have otherwise slipped below its end-June target. Macquarie retains an "outperform" call on Ampol and raises its price target by 14%, to A$46.50/share. Ampol ended Wednesday at A$34.96. ([email protected]; @dwinningWSJ)

2251 GMT -- Engineering contractor SRG Global measures up well to ASX-listed rival Monadelphous, suggests Shaw & Partners. SRG yesterday disclosed several contract wins and a strong outlook statement. That leads analyst Philip Pepe to lift FY27 and FY28 EPS forecasts by 9.8% and 13%, respectively. Shaw expects SRG will achieve some A$200 million of Ebitda in FY27 and A$222 million in FY28. It notes consensus forecasts for Monadelphous are A$230 million and A$239 million, respectively. SRG is trading on an FY27 price-to-earnings ratio of 20.7x, Shaw says. That compares favorably to Monadelphous, which is trading on a FY27 price-to-earnings ratio of 24.0x. "Putting SRG on the same FY27 price-to-earnings ratio as Monadelphous implies a valuation of circa A$4.00 per share," Shaw says. SRG ended Wednesday at A$3.75. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires