0504 GMT - NextDC keeps its bull at UBS despite likely short-term weakness in the data-center operator's margins. Analyst Tim Plumbe says in a note to clients that the Australian company's elevated FY 2024 capex will narrow margins, but should also signal a strong pipeline of contract wins. The step up in NextDC's contracted wins over FY 2023 and FY 2024 to date reduces revenue risk, he says and continues to like the company's defensive qualities. UBS raises target price 8.8% to A$15.40. The stock is down 1.3% at A$13.085. (stuart.condie@wsj.com)

0457 GMT - Appen's 2024 revenue may be negatively affected by the Australian data-annotation provider's incremental cost savings, Bell Potter analyst Chris Savage says in a note. Appen's 1H 2023 revenue of US$139.5 million fell short of Savage's US$144.5 million forecast due to weaker-than-expected global services revenue. Earnings also suffered from exchange-rate movements, but Savage notes that this was partially offset by stronger-than-anticipated gross margins. He cuts his 2023, 2024 and 2025 revenue forecasts for the company by 10%, 6% and 5%, respectively. Bell Potter cuts the stock's target 23% to A$1.70, and maintains a hold rating. Shares are up 0.7% at A$1.53. (stuart.condie@wsj.com)

0449 GMT - NextDC investors are likely to look past the data-center operator's short-term margin weakness once it announces new contract wins, Jefferies analyst Roger Samuel says. Samuel keeps an outperform rating on the Australian company as it heads into what looks like a peak year for capex. He writes in a note that margins will likely bottom in 1H of fiscal 2024 and resume expanding from the subsequent half. Demand remains strong and NextDC expects fiscal 2024 to be another record year for contract wins, he adds. Jefferies raises the stock's target price 1.6% to A$15.49. Shares are down 1.5% at A$13.06. (stuart.condie@wsj.com)

0444 GMT - Appen's earnings recovery is still possible but has been delayed until FY 2025, Jefferies analyst Wei Sim says. He tells clients that he isn't giving up on the Australian data-annotation company despite softer-than-expected guidance for 2H 2023. He acknowledges in a note the increased uncertainty around Appen's revenue outlook over the next 18 months but maintains a hold recommendation on the stock amid management's assurance that it is focusing on achieving Ebitda breakeven and disciplined returns on investment. Jefferies cuts its target price 35% to A$1.70. Shares are up 0.7% at A$1.53. (stuart.condie@wsj.com)

0436 GMT - Link Administration hasn't yet inspired confidence that it has a clear earnings base and balance sheet, says Barrenjoey analysts in a note. They reckon that the Australian fintech company's 2H FY 2023 results highlight the many moving parts playing out within the group, and while "additional disclosures and clarity from Link is assisting to analyse the core underlying business, there remain numerous moving parts with volatility somewhat elevated currently." Barrenjoey says it no longer sees significant downside risk to the share price following a recent fall, but sticks to its underweight call. The investment bank reckons that uncertainty around the business's outlook is one factor that will prevent the share price from recovering for now. (alice.uribe@wsj.com)

0424 GMT - Despite being cautious about Platinum Asset Management's outlook, Bell Potter analyst Marcus Barnard says there could be a way forward for shareholders. In a note, Barnard says that as a standalone business, there may be little hope that Platinum's prospects will suddenly improve. But given the Australian fund manager's distribution infrastructure, A$186 million cash on its balance sheet and large amount of funds under management, it could be valuable within a larger asset-management group. "In our view the choice is stark, Platinum either needs to acquire new meaningful strategies, or be acquired by someone that does have them," says BP. It has a hold call on the stock and cuts the target price 10% to A$1.45. Platinum falls 0.3% to A$1.51. (alice.uribe@wsj.com)

0406 GMT - Australia's prudential regulator will this year consult on Additional Tier 1 instruments, including hybrids, to see whether they are operating as intended, APRA Chair John Lonsdale told media after the release of the Australian regulator's new set of priorities. The paper, he says, won't contain proposals but will include issues that APRA is seeking views on. This is one of a number of issues Lonsdale says APRA is looking at closely, together with global regulators. APRA also plans to consult on unrealized loss valuations, and is doing work on interest-rate risk in the banking book. IRRBB refers to the risk that interest-rate movements pose to banks' capital or earnings. "We've had a consultation on that and we will be coming out with something before Christmas on that issue," Lonsdale says. (alice.uribe@wsj.com)

0340 GMT - Nonperforming loans at Australia's major banks remain low, but that doesn't look to be the case for nonbank lenders, says APRA Chair John Lonsdale. Speaking to the media after the release of the Australian regulator's new set of priorities, he says nonbank lenders are likely to be experiencing more stress than other lenders. "When we look at the banking sector, so let's take the major banks who hold the majority of the mortgage market, nonperforming loans... they're not at historical lows, but they're very low," says Lonsdale, who notes that APRA is "very comfortable with where the macroprudential settings are at this point." On mortgages generally, Lonsdale says major banks' usage of an exception to allow for certain loans to be refinanced is in line with APRA's expectations. (alice.uribe@wsj.com)

0306 GMT - Adbri's first-half volume growth was weaker than expected given the market appeared robust and peers have reported mid single-digit growth, Citi analyst Samuel Seow says. He says Adbri only recorded A$1 million Ebitda growth attributable to volume. "It surprised us that vol growth was so anemic," Seow says in a note. He says Adbri's balance sheet remains a concern and that there appears to be plenty of opportunities for cost overruns at the Kwinana project, which is only halfway complete. Citi has a sell rating and A$1.50 target on Adbri, which is 13% lower at A$2.39/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0256 GMT - Rare-earths miner Lynas's FY 2023 result was neutral, with lower-than-expected operating costs a positive but a capex increase on its Kalgoorlie project a negative, Citi analyst Paul McTaggart says in a research note. He highlights that "decisions related to accelerating activity to meet the external deadline created by the Malaysian operating license conditions have incurred significant additional costs" at Kalgoorlie. Citi has a neutral rating and a A$7.60/share target on Lynas, which is 0.4% higher in Sydney at A$6.98/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2300 ET - The near-term outlook for Link's continuing businesses may not be as good as Citi previously expected, says Citi analyst Nigel Pittaway in a note. He attributes this view partly to aspects of the Australian fintech company's FY 2024 guidance. "Link believes that, over the three years FY 2024-FY 2026, it can grow its group operating EBIT for its continuing operations at a CAGR of between 5-7%. At the moment, our forecasts imply around 5% at the bottom end of the range," Citi says. At the same time, Citi says, Link hasn't provided clarity over contract renewals with pension funds AustralianSuper and Cbus. The investment bank stays neutral on the stock and cuts its target 6.7% to A$1.40. Link last traded at A$1.34. (alice.uribe@wsj.com)

(END) Dow Jones Newswires