0201 GMT - UBS wonders whether BHP's incoming CEO, Brandon Craig, needs to rethink metallurgical coal's role in the miner's portfolio. BHP says it won't invest in the business due to an onerous royalty structure in Australia's Queensland state, where it mines. "We believe some investors question whether the new CEO should explore alternative strategies especially as holding (not investing in) depleting assets typically results in cost challenges and impacts value medium-term," UBS says. Valuations achieved in recent metallurgical-coal asset sales have been attractive, and the royalty structure in Queensland is unlikely to change until at least 2032, the bank says. UBS has a neutral rating and A$60.00 target on BHP. Shares are up 0.3% at A$60.35. ([email protected]; @RhiannonHoyle)

0110 GMT - WiseTech Global's bull at Bell Potter now sees fiscal 2026 revenue coming in at the very bottom of the logistics-software provider's guidance range. Analyst Chris Savage lowers his revenue forecasts for the next three fiscal years, telling clients in a note that thinks the Australian company might be finding it harder than anticipated to move some customers across to its new pricing model. He wonders whether WiseTech may have to offer greater incentives to persuade the last of its customers on the old model to move across. He forecasts US$1.39 billion in fiscal 2026 revenue, and notes that WiseTech didn't mention its revenue guidance when it reiterated its Ebitda guidance last month. Bell Potter cuts its target price 8.9% to 71.75 Australian dollars and keeps a buy rating on the stock, which is down 1.5% at A$37.49. ([email protected])

0102 GMT - Wesfarmers' next growth phase is seen by Jarden analysts as incremental rather than a step change. They tell clients in a note that the retail and industrial conglomerate's management is executing well on strategy and has a clear plan within its existing corporate portfolio. However, they reckon that the Australian company needs to find its next growth lever. They say there is a material opportunity for Wesfarmers to become the country's leading customer-facing business, citing Walmart in the U.S. as an example, but warn that this will require more time and money. For now, Jarden prefers Woolworths and Sigma Healthcare. Jarden raises its target price 5.3% to A$79.30 and keeps a neutral rating on the stock, which is up 0.1% at A$83.48. ([email protected])

0057 GMT - Wesfarmers' plans to expand its Kmart furniture sales do little to move the dial on the stock for UBS analysts. Maintaining a neutral rating, they tell clients in a note that strong earnings growth outlook for Wesfarmers' Kmart and Bunnings chains is already reflected in the retail and industrial conglomerate's valuation multiples. They acknowledge that the discount department store Kmart's total addressable market and market share have expanded, with growth drivers including new home-and-living stores, but see risk-reward as balanced at current levels. UBS lifts the stock's target price by 3.7% to 84.00 Australian dollars. Shares are down 0.2% at A$83.24. ([email protected])

0053 GMT - Steadfast's bulls at Jarden reckon that the Australian insurance broker appears to be a good value for its prospective buyers if their latest offer is accepted. Jarden's analysts say in a note that while the 6.00 Australian dollars-a-share proposal by Amwins Group and Dragoneer Investment represents a 52% premium to the stock's prior close, the offer is pitched at a lower EPS multiple than the last two proposals for rival Australian broker AUB. The proposal for Steadfast has a higher chance of success than the one EQT made and then withdrew for AUB, they say, pointing to Amwins' positioning as a strategic trade buyer and Dragoneer's long-term investment history. Jarden raises the stock target price by 4.4% to A$5.90 and keeps an overweight rating. Steadfast stock is down 1.1% at A$5.32. ([email protected])

0034 GMT - A takeover offer for Australia's Steadfast comes as no surprise to UBS analysts given elevated M&A activity in insurance broking globally. The A$6.66 billion offer for Steadfast from Amwins Group and Dragoneer Investment comes amid broader sector interest from private equity-backed consolidators, they tell clients in a note. They observe that the sector's broader de-rate to historical lows is a key driver, but wonder whether investors may be surprised at the absence of a significant change-of-control premium. The A$6.00-a-share offer is in line with UBS's existing target price. UBS has a last-published buy rating on the stock, which is down 1.1% at A$5.32. ([email protected])

0033 GMT - Charter Hall Long WALE REIT's significant debt refinancing doesn't resolve the lack of growth in FY 2027 and FY 2028, says UBS. Charter Hall Long WALE REIT has put in place a new A$2 billion secured debt platform, easing concerns around covenant breaches. UBS lifts its FY 2027-2029 EPS forecasts by 2.0%-2.5%. Still, analyst Solomon Zhang says near-term EPS growth remains hamstrung by a low in-place cost of debt. "Following our earnings changes, we still have no EPS growth across FY27/28," UBS says. "And this is despite sitting 1%/3% ahead of consensus across FY27/28." UBS retains a sell call on Charter Hall Long WALE REIT, which is up 1.7% at A$3.64. ([email protected]; @dwinningWSJ)

0030 GMT - Sigma Healthcare's flirtation with an acquisition of the Boots pharmacy chain in the U.K. hinges a lot on the outlook for the business, suggests Macquarie. As a product category, health and beauty have tailwinds. A deal could also boost Sigma's EPS by 2%. Macquarie contends. Still, it says "key to an attractive deal is ability to unlock other value." This could include a look at Boots's business structure, including potential for a franchise offering. Also, the efficacy of Sigma's existing Chemist Warehouse format and the broader outlook in the U.K. "Getting comfort on these or other potential initiatives would be critical in deal attractiveness, if progressed," says Macquarie, which rates Sigma at outperform. ([email protected]; @dwinningWSJ)

0022 GMT - Wesfarmers's share price has held up well relative to other discretionary retailers since January, and this has changed Macquarie's view of the stock. "With lack of valuation support and no near-term catalyst driving additional earnings upside, we downgrade to neutral," from outperform, says Macquarie. Wesfarmers held its investor day on Wednesday. Macquarie was impressed, noting the quality of its businesses and strategy was in evidence again. It expects Bunnings and Kmart will continue to drive returns for the group. It also highlights positive signals in Wesfarmers's heath and lithium businesses. Wesfarmers is down 0.3% at A$83.15, versus Macquarie's A$85.00/share price target. ([email protected]; @dwinningWSJ)

2319 GMT - For Jefferies, one takeaway from Wesfarmers's strategy day was management's confidence in the outlook for the Bunnings home-improvement chain. That's despite a deteriorating macro outlook and recent tax changes affecting the housing industry. Analyst Michael Simotas says management's confidence reflects Bunnings's expansion of certain categories, such as workwear and camping, and growth in its store-network. Bunnings also plans to expand its range of major appliances in the next 12 to 18 months. That could impact JB Hi-Fi, Harvey Norman and especially The Good Guys. "Appliances contribute meaningful sales for U.S. home improvement peers (8-15%)," Jefferies says. "Similar penetration would imply circa A$2 billion sales for Bunnings, but this would not happen quickly." It retains a hold call on Wesfarmers. ([email protected]; @dwinningWSJ)

(END) Dow Jones Newswires