0459 GMT - UBS analyst Lucy Huang stays bearish on Zip Co. despite the Australian buy-now, pay-later operator delivering on promises to cut cash burn. Huang views Zip exiting non-core markets and its increased efficiency as positives, but remains cautious on the medium-term outlook given macro uncertainty in the U.S. and Australia. Soft macro conditions could limit Zip's ability to grow the value of transactions on its platform while controlling bad debts. She also worries about the impact of higher interest rates on funding. UBS cuts the stock's target price 20% to A$0.36 and maintains a sell rating. Shares are down 1.45% at A$0.34. (stuart.condie@wsj.com)

0457 GMT - Beaten-down casino operator Star Entertainment gets a new bull at Macquarie based on improving revenue trends, cost control and debt refinancing. Macquarie analysts raise their recommendation to outperform from neutral, highlighting their belief that 4Q marked the low point for the Australian company's quarterly earnings and that rising revenues will drive a gradual recovery through FY 2024. They see Ebitda falling 15% in FY 2024 before increasing 9.6% and 14%, respectively, in the subsequent two years. Their outperform rating assumes that debt refinancing isn't equity dilutive. The target price remains at A$1.25. Shares are 4.7% higher at A$1.01. (stuart.condie@wsj.com)

0444 GMT - Appen's 34% drop in 1H key customer revenue may signify structural and cyclical changes to the data-annotation provider's global services business, Macquarie analysts say in a research note. They tell clients that increased competition from startups with more cost-efficient operating models is undermining Appen's growth in large-language models. Appen will likely need to raise capital, unless it can find additional cost savings or global-services revenue recovers, they say. Macquarie lowers the target price by 21% to A$1.02 and keeps an underperform rating on the stock. Shares are 1.0% higher at A$1.535. (stuart.condie@wsj.com)

0357 GMT - Medical-device maker Fisher & Paykel Healthcare looks poised for long-term earnings growth, Forsyth Barr says, but market bets aren't reflecting a risk of disappointment along the way. "We continue to believe that a near best case long-term earnings scenario is priced by the market," such as gross margins returning to 66%, Ebit margins recovering to 28%-29% and revenue growth of 10%, analyst Matt Montgomerie says in a research note. "While this is broadly consistent with our expectations, we continue to struggle with the degree of certainty priced." Forsyth Barr retains an underperform call on the stock. (david.winning@wsj.com; @dwinningWSJ)

0346 GMT - NextDC's international expansion plans are bigger and bolder than Morgan Stanley analysts had originally expected, and consequently carry more risk. The MS analysts say in a note that they have lowered their Ebitda forecasts for the three fiscal years through FY 2026 but add that the plans should translate into material cash flows if executed well. Managing multiple new projects isn't easy but the extra risk is the trade-off for higher growth over a longer period, they add. MS lifts target price 13% to A$14.50 and stays overweight on the stock, which is up 2.3% at A$13.39. (stuart.condie@wsj.com)

0309 GMT - While capex risks remain for Adbri, Jefferies is no longer bearish about the Australian building-materials supplier's stock. That is because efforts to raise prices and a backlog of work are supporting Adbri's outlook, analyst Simon Thackray says in a note. Adbri implemented price rises throughout 1H, and Jefferies expects the company to lift prices by another 2% in 2H. As a result, the bank's Ebitda projection for FY 2023 moves up 19%, with respective 32% and 29% increases to its forecasts in FY 2024 and FY 2025. "This is off the back of stronger margins given cost control delivered in 1H, as we expect Ebitda margins to improve from 16.4% to 17.7% in FY 2024," says Jefferies, moving to hold from underperform. (david.winning@wsj.com; @dwinningWSJ)

0246 GMT - There is a lot to like about New Hope other than the current valuation of its stock relative to rival coal miners, says Jefferies. It starts coverage of New Hope at hold with a target price of A$5.40. Jefferies says attractions include a strong net cash position and expects New Hope to deliver a sustainable 10% dividend yield from FY 2027. "We like the thermal coal exposure New Hope offers," analyst Chris Drew says in a note. "However, value is full compared to coal sector peers." New Hope is up 0.9% at A$5.73. (david.winning@wsj.com; @dwinningWSJ)

0238 GMT - Integral Diagnostics shares had a rocky run ahead of the company's FY 2023 result on Monday, down nearly 10% from its Aug. 18 peak, and Jefferies has moved to ride the subsequent recovery by upgrading the stock to buy from hold. In a note, analyst David Stanton points out that the management expects FY 2024 operating leverage should diagnostic imaging volume growth continue. "After further analysis of corporate borrowing costs, we update our FY 2024 interest expense forecasts to circa A$20 million (from A$25 million)," he says. "This leads to EPS upgrades of 23% in FY 2024 and 6% in FY 2025. (david.winning@wsj.com; @dwinningWSJ)

0159 GMT - BOQ's turnaround plans are likely to continue to be challenged for a range of reasons, Morgan Stanley analysts say in a note. These span weak mortgage growth, downward pressure on margins, as well as re-investment associated with its multi-year transformation. MS expects BOQ's costs to rise around 5% to A$519 million in 2H FY 2023 from 1H, which would imply on-year growth of around 8% for the year. "However, our forecasts assume that expenses peak in 2H FY 2023, with realization of the full ME Bank synergies and savings from simplification and digitization." For BOQ's 2H FY 2023 results due in October, MS forecasts reported cash profit of A$215 million, which would be down 16% on the previous half, and pre-provision profit of A$350 million, down 14%. (alice.uribe@wsj.com)

0146 GMT - Count could see potential interest from suitors if it continues to trade cheaply, E&P analyst Olivier Coulon says in a note. At the same time, he reckons Commonwealth Bank of Australia's remediation coverage for Count looks to be making good progress, which could also be a reason for interest. For 2H of FY 2023, E&P sees that the professional accounting and advice company delivered a result ahead of E&P's adjusted Ebitda forecast. Underlying net profit after tax and underlying net profit after tax and acquisition amortisation also appear to be broadly in line with E&P forecasts. Count had a "slightly better than expected operational result on better accounting performance, offset partially by weaker core related," Coulon says. The stock is up 3.9% to A$0.54.(alice.uribe@wsj.com)

0128 GMT - Macquarie analysts see plenty to like in Brambles' fiscal 2023 results, highlighting falling lumber costs and higher product prices. They tell clients in a note that the Australia-listed pallet supplier's outlook also appears positive, with volumes expected to recover in 2H FY 2024, cash flows improving and strong profit guidance. The company's guidance for FY 2024 underlying profit growth of 9%-12% comfortably exceeds Macquarie's prior expectation of 5%. Shares are up 5.9% at A$14.98. (stuart.condie@wsj.com)

0059 GMT - Disappointment at Healius' weaker pathology performance and higher interest costs in the last fiscal year are partially offset by other factors, RBC Capital Markets analysts. They point to the Australian imaging-services provider's better-than-expected imaging revenue of A$431 million, good corporate cost reductions and strong cash conversion. The expectation for lower FY 2024 capex is also positive, they say in a note. RBC has a sector-perform rating and A$3.25 target price on the stock, which is up 7.0% at A$2.90. (stuart.condie@wsj.com)

0009 GMT - Brambles' fiscal 2024 outlook is stronger than Citi analyst Samuel Seow had anticipated. Seow says in a note that the Australia-listed pallet supplier's guidance, which is for 10% constant-currency profit growth at the midpoint range, is less cautious than he had expected this early in the new fiscal year. He also points out that margins look to have widened, given that fiscal 2023 sales were at the lower end of guidance and profit was at the upper end. Citi has a buy rating and A$15.65 target price on the stock, which is up 1.8% at A$14.41 in early trade. (stuart.condie@wsj.com)

1025 GMT - Base Resources shares jumped following Monday's full-year results, and could rally materially again when the miner shares news on progress towards agreeing fiscal terms for its Madagascan mine, Berenberg analysts Richard Hatch and William Dalby write in a research note. The current share-price jump is driven by the higher-than-expected dividend payout, as the Australian company declared final dividend of 4 Australian cents, doubling Berenberg's forecast, the analysts say. In addition, the stock could jump again once fiscal terms for the Toliara mine in Madagascar have been agreed on, after the country's presidential election, they say. Berenberg rates the stock buy with a 29-pence price target. Shares are up 6.1% at 10.45 pence. (christian.moess@wsj.com)

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)

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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)

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