0018 GMT - Macquarie has substantial growth options in its private markets business, including green energy, infrastructure and digitalisation, say Morgan Stanley analysts in a note looking at the Australian financial company's first U.S. investor day. MS notes that this investor day covers Macquarie's Asset Management and Green Investment Group units. "As we have written previously, the Inflation Reduction Act legislation further enhances the green energy opportunity in the US," says MS. "Investor questions focused on how increasing competition will impact this growth." MS reckons that the green energy opportunity is so large that there are likely to be several substantial winners, with Macquarie well placed to lead.(alice.uribe@wsj.com)

0002 GMT - An increased emphasis on profitability by new Xero Chief Executive Sukhinder Singh Cassidy could help the accounting-software provider comfortably exceed analysts' current earnings forecasts, Xero analysts say. They think that Xero could begin an official shift away from growth and toward a more balanced approach after fiscal 2023, which concludes on March 31. This could increase earnings for fiscal 2024 through fiscal 2027 by between 80% and 157% from stronger margin expansion, they tell clients in a note. Macquarie raises target price 14% to A$80.00 after adjusting macro assumptions and rolling over forecasts to fiscal 2024. The strategy shift is hypothetical at this point, they stress. They stick with a neutral rating. Shares are down 1.6% at A$78.32. (stuart.condie@wsj.com; @StuartLCondie)

2340 GMT - The exit of Megaport's CEO suggests that the Australian communication-services networker is entering a period of heightened strategic and operational uncertainty, Macquarie analyst Darren Leung says. He cuts his recommendation on the stock to neutral from outperform and tells clients in a note that he is awaiting a strategic update from the next CEO before taking a more positive stance. Leung thinks that Megaport is likely to defer its planned strategic review following CEO Vincent English's resignation this week, which elevates risk around company funding. Macquarie previously suggested Megaport will need to raise capital if annual revenue growth falls below 20%. Macquarie cuts its target price by 36% to A$5.00. Shares are down 0.8% at A$4.84. (stuart.condie@wsj.com; @StuartLCondie)

2329 GMT -- Tech retailer Dicker Data still faces risk of softening consumer demand despite management's positive remarks on the health of its order book so far in fiscal 2023, Goldman Sachs analysts say. They tell clients in a note that consumer electronics sales data are hinting at a potential slowdown in Dicker's small-and-medium business unit, which accounts for about 75% of sales. There is also the risk that rivals could discount to reduce inventory, they say. This cautious view on hardware revenue, combined with higher interest costs, drive a 12% cut in target price to A$10.00. GS stays neutral on the stock, which is down 0.5% at A$8.40. (stuart.condie@wsj.com)

2302 GMT - A sell-side call with BlueScope Steel's acting CFO, Mark Scicluna, highlighted the steelmaker's cautious optimism in both its US and Australian markets, Citi analyst Paul McTaggart says in a note. While the ASX-listed company appears wary on North Star's profit outlook for 2H FY 2023, citing lags across its order book, BlueScope's Scicluna "called out robust underlying demand and lengthening lead times," McTaggart says. BlueScope reckons recent US consolidation has improved industry profitability and, interestingly, the steelmaker says its been able to reduce its pig iron usage and maintain product quality, McTaggart adds. BlueScope last traded at A$20.37. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2245 GMT - The sudden departure of Megaport chief executive Vincent English suggests that there may have been some discord behind the scenes over the company's upcoming strategic review, Citi analyst Siraj Ahmed says. He tells clients in a note that there may have been some disagreement between English and the Megaport board. Ahmed notes Megaport also recently hired a new chief revenue officer. There is usually a 12-week notice period but English will depart by April 30, he adds. Ahmed thinks that near-term conditions could be tough and the Australian tech-services firm's operational turnaround could take longer than anticipated. Citi has a last-published neutral recommendation and A$7.05 target price on the stock. Shares last traded at A$4.88. (stuart.condie@wsj.com; @StuartLCondie)

2241 GMT - Carsales.com's acquisition of an additional 40% stake in Brazil's Webmotors is likely to be supported by investors, although there will be questions about why Banco Santander softened its prior reluctance to sell, E&P Financial analyst Paul Mason says. He uses a note to clients to highlight the strength of the asset and a valuation multiple that looks modest relative to Webmotors' historical growth. Mason notes that Carsales effectively trailed the announcement by spending more time than usual at its 1H results discussing the Brazilian vehicle marketplace. Carsales already owned 30% of Webmotors. E&P has a positive recommendation and A$26.17 target price on the stock, which last traded at A$22.64. (stuart.condie@wsj.com; @StuartLCondie)

0523 GMT - Commonwealth Bank is comfortable with an Australian regulator's decision to keep the mortgage serviceability buffer at 3%, but says it expects the regulator will continue to review the buffer and provide explanations about its thinking. Speaking at the Australian Financial Review Business Summit, CBA CEO Matt Comyn says that "overall" he is supportive of the Australian Prudential Regulation Authority not moving the buffer up. "I wouldn't want to speak for the regulator, but I'm sure they will continue to review it," he says. Still, Comyn adds that it remains important that people are able to continue to borrow through the cycle. (alice.uribe@wsj.com)

(END) Dow Jones Newswires