0036 GMT - Higher bond yields should provide Australian banks some margin relief amid competition and deposit switching through fiscal 2024, Macquarie analysts say in a note to clients. With yields now likely to stay higher for longer than previously expected, they anticipate a margin tailwind of 8-11 basis points through fiscal 2024. Pressures elsewhere mean they still expect annual revenue to be 1%-4% down on-year across major and mid-tier lenders. The analysts say that lenders continue to look well provisioned against credit losses that could rise over the medium term due to higher interest rates, but the outlook needs to become clearer before lower impairment charges translate to a rerate of banking stocks. (stuart.condie@wsj.com)

0008 GMT - REA's first-half volume growth is shaping up to be materially stronger than Macquarie analysts had expected from the Australian real-estate advertiser. They tell clients in a note that extrapolating September's 7% on year rise using historical seasonal trends implies listings in the six months through December grew 10%, compared with their prior forecast of 5%. They still cut their stock target price 8.4% to A$155.00 after adjusting multiples on a mark-to-market basis but stay neutral on the stock, which is up 0.7% at A$156.98. REA is 61% owned by News Corp., the owner of Dow Jones & Co., publisher of this newswire and The Wall Street Journal. (stuart.condie@wsj.com)

2300 GMT - Bank of Queensland shares still haven't bottomed out despite losing more than 25% of their value since the departure of its last CEO in November 2022, Citi analysts say. They worry the regional lender's management instability is affecting performance and believe its annual result is likely to miss market expectations due to sluggish lending, deposit costs and other cost headwinds. Lending growth looks negative over the past six months and is likely to negatively affect net-interest margin, they say in a note to clients. Shares are close to finding a floor but risks remain tilted to the downside, they add. Citi cuts its rating to sell from neutral and lowers its target price by 13% to A$5.00. Shares are at A$5.71 ahead of the open. (stuart.condie@wsj.com)

2250 GMT - Domain's listings growth is lagging that of REA and its shares look expensive compared with its larger real-estate advertising rival, Macquarie analysts say. They say in a note to clients that Domain's 1% September volume growth implies listings will grow by 3% on year over the whole of the December half. That compares with Macquarie's prior forecast of 5%. The analysts reckon Domain is valued at about 17.6x Ebitda, which they think is too high. They cut Domain's target price by 2.4% to A$2.86 and maintain an underperform rating on the stock, which is at A$3.88 ahead of the open. REA is 61% owned by News Corp., the owner of Dow Jones & Co., publisher of this newswire and The Wall Street Journal. (stuart.condie@wsj.com)

2238 GMT - While investors in Pantoro still need clarity on costs and consistent delivery of improved quarterly results, Bell Potter thinks these are priced in by the recent decline in the gold miner's stock. Bell Potter lifts Pantoro to buy, from hold, describing its forecasts and valuation as conservative. "Pantoro presents an acceptable risk-reward opportunity with 41% upside from the last closing price" of 3.7 Australian cents, analyst David Coates says in a note. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 09, 2023 00:00 ET (04:00 GMT)