0238 GMT - Platinum Asset Management needs major changes if the Australian wealth manager is to avoid losing further market value, Bell Potter analyst Marcus Barnard says in a note. Barnard cuts his recommendation on Platinum to sell from hold after its announcement of another A$173 million in monthly outflows. "Without significant change, PTM is likely to continue to leach value, and ultimately become worthless," Barnard writes. He thinks that management's options to arrest Platinum's deteriorating performance are narrowing and slashes his target price for the stock by 42% to A$0.84, in line with what he reckons Platinum might be worth to an acquirer prepared to halve the wealth manager's cost base. Shares are flat at A$1.21. (stuart.condie@wsj.com)

0140 GMT - Webjet's exposure to hotel bookings via its WebBeds business supports Goldman Sachs analysts' decision to upgrade the stock to buy from hold. They observe that industry data indicates that hotel demand is robust amid recovering international travel. They also tweak their forecasts for the Australian travel agent, becoming more optimistic on margins on expectations of asset-integration efficiencies and rational industry competition. They raise their target price for the stock by 7.8% to A$8.30. Shares are up 2.2% at A$6.63. (stuart.condie@wsj.com)

0131 GMT - Breville's recent share-price pull-back earns the small-appliance manufacturer a new bull at Goldman Sachs, where analysts see consumer behavior as supportive. Analysts Lisa Deng and James Leigh write in a note that their industry checks have also led them to become more confident in U.S. demand, a recovery in Europe, and consumer resilience in Asia-Pacific. They anticipate sales rising at an average 7.4% annually over the next three fiscal years. GS raises its recommendation on the stock to buy from hold and lifts its target price by 4.25% to A$24.50. Shares are up 4.8% at A$23.29. (stuart.condie@wsj.com)

0055 GMT - Bank of Queensland's forward-looking commentary on loan growth, margins and expenses all create more uncertainty about the Australian lender's earnings outlook, Morgan Stanley analyst Richard E. Wiles tells clients. He notes the lack of specific fiscal 2024 guidance and says that CEO Patrick Allaway's high conviction that BOQ can hit its fiscal 2026 return-on-equity and cost-to-income targets appear to be premised on an optimistic view of both macro conditions and industry rationality. Wiles reckons that BOQ's total loan growth will shrink by 1%, or even more, in fiscal 2024. MS cuts target price 3.6% to A$5.30 and maintains an underweight rating on the stock, which is up 2.2% at A$5.47. (stuart.condie@wsj.com)

0049 GMT - Bank of Queensland's larger exposure to inflation in non-staff costs supports Goldman Sachs' continued sell rating on the stock. GS analysts say in a note that the regional Australian lender's transformation program is the right long-term strategy to deliver a strong and simpler bank, but that it does increase exposure to cost inflation. Also in the negative column are the program's operational risks, weak home-loan lending momentum, and pressure on margins. The GS analysts cut their fiscal 2024 EPS forecast by 20% and lower target price 7.9% to A$5.15. Shares are up 1.9% at A$5.45. (stuart.condie@wsj.com)

2300 GMT - Bank of Queensland's claim that its shrinking share of Australia's home-loan market is related to its disciplined loan pricing doesn't stack up for Jefferies analyst Matthew Wilson. He points out that its home-loan lending shrank in fiscal 2023 even as the regional lender absorbed 6 basis points in loan retention rate discounting. He also writes in a note that BOQ's A$925 million in below-the-line items over the past decade equates to about 1.3 times core profit, and laments the CEO's acknowledgement that more one-offs were possible. He wonders whether BOQ faces another so-called lost decade. Jefferies has an underperform rating and A$4.80 target price on the stock, which is at A$5.35 ahead of the open. (stuart.condie@wsj.com)

2213 GMT - Nickel Industries's latest funding package impresses Bell Potter, which thinks it should comfortably cover requirements for its Excelsior Nickel Cobalt high pressure acid leach project in Indonesia. Nickel Industries yesterday said it had secured financing facilities totalling US$400 million with PT Bank Negara Indonesia. "Interest costs, based on current benchmarks, will be 7.3-8.8%, which we view as very competitive and a solid endorsement of Nickel Industries's assets," analyst David Coates says in a note. "On our assumptions, Nickel Industries's combined funding sources imply total available liquidity of US$2.1 billion over the eight quarters to October 2025." (david.winning@wsj.com; @dwinningWSJ)

2206 GMT - Boss Energy is now heading into the riskier commissioning stage of its Honeymoon uranium project, says Shaw & Partners, which downgrades the stock to sell from hold. Boss's shares have more than doubled since the start of January and that's an opportunity for investors to take some profits. "We continue to like Boss for its operations being in Australia, its strategic uranium inventory (1.25 million lb currently valued at A$135 million), and its leverage to a uranium sector upcycle," analyst Andrew Hines says in a note. "Nonetheless we see better value elsewhere in the sector." (david.winning@wsj.com; @dwinningWSJ)

2156 GMT - With mining activity underway at Boss Energy's Honeymoon operation, the next big catalyst appears to be locking in buyers for some uranium production. Jefferies thinks Boss is close to finalizing offtake agreements, with contracts expected to be in place prior to first production. "Uranium markets have clearly been moving in Boss's favor," analyst Chris Drew says in a note. "We would expect price floors at close to US$60/lb for spot price linked offtake agreements." Boss yesterday said Honeymoon remains on budget, with production due to start before the end of December. (david.winning@wsj.com; @dwinningWSJ)

2151 GMT - Decade-low Asian steel spreads and lower US spreads put consensus expectations for BlueScope Steel at risk, says Morgan Stanley, which downgrades the stock to underweight from overweight. "We also see risks from softer Australian residential construction to high-margin Colorbond volumes," analyst Andrew G. Scott says in a note. The East Asian hot-rolled coil spread has dropped to US$120/ton, which MS says is some US$60/ton below BlueScope's indicative breakeven spread range. MS cuts its EPS forecasts for FY 2024 and FY 2025 by 25% and 27%, respectively. It forecasts East Asian spreads at US$200/ton in FY 2024. As a result, MS lowers its price target by 25% to A$18.00/share. BlueScope ended Wednesday at A$19.53. (david.winning@wsj.com; @dwinningWSJ)

2143 GMT - The changes to Qantas's board highlight accountability of directors for recent reputational damage, and the commitment for renewal, which Jefferies sees as positives. Qantas yesterday said Chairman Richard Goyder will retire before the company's 2024 AGM, while two more directors will retire at its 1H result. "While the addition of Doug Parker (ex-CEO of American Airlines) back in May 2023 was a key positive, the business would also benefit from stronger local aviation experience being on the board," analyst Anthony Moulder says in a note. "We would also expect a strongly credentialed individual to join the board as the chairman in waiting that doesn't need direct aviation experience." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 12, 2023 00:00 ET (04:00 GMT)