0359 GMT - Woolworths keeps its bull at UBS despite the investment bank's analysts tipping the Australian supermarket chain's 1Q sales to fall slightly short of market expectations. UBS analyst Shaun Cousins expects Woolworths to grow 1Q sales 4.7% to A$17.2 billion, compared with the average analyst forecast of 5.5% growth to A$17.3 billion. He says food sales in Australia and New Zealand will continue to be supported by inflation. The precise impact of consumers increasingly eating at home but also trading down to cheaper items or retailers look hard to accurately predict. UBS trims its target price 2.3% to A$42.00 and keeps a buy rating on the stock, which is up 0.9% at A$36.89. (stuart.condie@wsj.com)

0338 GMT - The market conditions facing Australia-listed Credit Corp. should become clearer as U.S. peers report quarterly results in the coming weeks, Canaccord Genuity analyst Allan Franklin says. He tells clients in a note that Credit Corp. believes current conditions should allow fiscal 2024 investments to deliver on-target returns. The share-price decline that greeted Credit Corp.'s most recent trading update has left the stock trading at book value, Franklin says. Credit Corp.'s U.S. debt collections have been running below both management and market expectations. Canaccord Genuity slashes the stock's target price 38% to A$13.20 and maintains a hold rating. Shares are down 1.5% at A$12.21. (stuart.condie@wsj.com)

0327 GMT - Life360 looks cheap relative to U.S.-listed peers, especially as it becomes profitable, Goldman Sachs analyst Chris Gawler says. He points out in a note that the Australia-listed family safety-app developer is spending a higher percentage of revenue on sales and marketing at its current stage of development than comparable tech providers. Yet this seems justified to Gawler given the rapid growth of its annual recurring revenue relative to sales and market spend. He sees potential for Life360 to upgrade annual earnings guidance alongside its Nov. 15, 3Q update. GS has a A$10.50 target price on the stock and reiterates its buy recommendation. Shares are down 2.7% at A$7.84. (stuart.condie@wsj.com)

0302 GMT - Alumina's shares have been underperforming mostly because of concerns about a prolonged mine-plan approvals process, as well as cost pressures from mining lower-grade bauxite and having some operations running below capacity, say Morgan Stanley analysts. But they reckon the stock will bounce back on an outcome that Alumina expects by the end of 2023. In a note, the analysts say continued operational improvements should support production, while alumina prices are expected to hold steady heading into 4Q. They keep an overweight rating and target price of A$1.40 on Alumina. "Nonetheless, we are cognizant that the opportunity may appeal mostly to value funds and comes with risks, should mine plan approvals see further delays or restrictive conditions," the analysts say. Alumina is down 4.9% at A$0.77. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0229 GMT - Morgans analyst Scott Murdoch would like evidence that Bapcor's underwhelming 1Q performance doesn't stem from a loss of market share. He writes in a note that the stock looks cheap at current levels but that he needs a reason to become more positive on the Australian manufacturer of auto parts. It's good that the company remains confident in the eventual benefits of its current transformation program, but he thinks that the timing and size of the targets look optimistic. Evidence of execution would help improve his opinion. Morgans cuts the stock's target price 8.3% to A$6.95 and maintains a hold rating. Shares are down 2.0% at A$5.41. (stuart.condie@wsj.com)

0156 GMT - A temporary shutdown of Lynas's Malaysia rare-earths plant is likely to result in an even tighter market for neodymium-praseodymium--or NdPr--in the next six months, paring global supplies by roughly 1,500 tons, Macquarie analysts say in a note. The analysts forecast the NdPr market to be finely balanced in 2024 and say lower production and sales from Lynas could result in a market deficit. "Encouragingly, LYC has completed the waste gas treatment plant at Kalgoorlie," where it is building a new processing facility, the analysts say. "First production and the subsequent ramp-up is scheduled in the next few months." (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0104 GMT - Any weakness in BlueScope Steel's shares is a buying opportunity, according to Goldman Sachs analysts Paul Young and Caleb Heiner. "The stock is undervalued versus U.S. peers and has attractive medium term growth," say the analysts in a note. They trim the stock's target by 1% to A$21.60 after the steelmaker downgraded its Ebit guidance, but maintain a buy rating. BlueScope is 0.1% higher in Sydney at A$17.92, despite a broader retreat in stocks. Still, its shares are down by 15% since the start of September, near a roughly eight-month low. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0026 GMT - South32's 1Q production was weaker than Citi was expecting, with sizable misses in zinc, metallurgical coal and nickel output, analyst Paul McTaggart says in a note. "Much of the miss was driven by planned maintenance/longwall move and S32 has not amended FY24 production guidance," he says. The miner's net debt--at $782 million--is also much higher than anticipated, which is disappointing, adds McTaggart. Citi has a buy rating on South32 with a A$3.90 target. The stock is down by 2.4% in Sydney at A$3.29 amid a broadbased pullback in Australian stocks. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0019 GMT - ARB Corp.'s near-term earnings trajectory is broadly positive but looks fully captured by the stock's current levels, Morgans analyst Jared Gelsomino writes in a note. He upgrades his EPS forecasts for the three fiscal years through FY 2026 by between 5.4% and 8.3%, driven by improved margin expectations and slightly higher sales growth within aftermarket and original equipment manufacturing. Yet, he maintains a hold rating on the vehicle-parts supplier, pointing to a softening consumer backdrop and near-term risks in ARB's export division. Morgans raises the target price 1.0% to A$31.15. Shares are up 3.0% at A$31.165. (stuart.condie@wsj.com)

2354 GMT - Commonwealth Bank is likely to turn to product pricing in response to its reduced share of Australia's home-loan market, creating margin risk across the sector, Morgan Stanley analysts say. They write in a note that the importance of retail banking to Commonwealth's growth profile means that Australia's largest bank is unlikely to tolerate continued loss of share of the mortgage market. A pricing response is likely in the coming months, they reckon. They anticipate a 1Q net interest margin of 2.01%, down from 2.05% in 2H in fiscal 2023. MS trims the stock's target price 1.2% to A$84.50 and stays underweight. Shares are down 0.5% at A$98.27. (stuart.condie@wsj.com)

2347 GMT - Treasury Wine Estates' fiscal 2024 earnings could be dented if China takes longer than five months to remove import tariffs on Australian wine, UBS analysts say. While confirmation of China's tariff review is positive for the Australian wine producer, the proposed five-month window is longer than the analysts had anticipated. They write in a note that any further delay could affect earnings, since Treasury has slowed shipments with the aim of retaining product for China in the event of tariff removal. It will be hard to catch up shipments for the remainder of fiscal 2024 while maintaining product scarcity and pricing, they say. UBS has a buy rating and A$13.75 target price on the stock, which is up 2.55% at A$12.07. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

October 23, 2023 00:00 ET (04:00 GMT)