0357 GMT - Domino's Pizza Enterprises gets bumped up to outperform from neutral by Macquarie analysts, who see an opportunity for the fast-food operator to expand margins through new product launches. They reckon that input costs have peaked and that products including fries covered in melted cheese represent a significant margin opportunity. They calculate that store Ebitda margins could rise to 9.0% from 8.5% if just 10% of garlic bread-buying customers swap to the so-called loaded fries. Macquarie lifts target price 7.4% to A$58.00. Shares are up 2.5% at A$53.51. (stuart.condie@wsj.com)

0351 GMT - Propel Funeral Partners' latest bull is attracted by the Australian funeral operator's proven consolidation model across a highly fragmented market. Macquarie initiates stock coverage with an outperform rating as analysts point to an Australia-New Zealand market share that has grown to 8% from 3% in 2017. That was driven by the acquisition of 27 businesses for A$269 million during the period, they write in a note. They add that Propel has sufficient funding for more medium-term acquisitions and that the industry's barriers to entry offer the stock attractive defensive characteristics. Macquarie places a A$5.95 target price on the stock. Shares are 0.3% lower at A$4.815. (stuart.condie@wsj.com)

0325 GMT - Treasury Wine Estates keeps its neutral rating from Citi analyst Sam Teeger, who lowers his target price on the stock to account for the dilutive impact of the Australian vintner's latest acquisition. Teeger trims his target price by 8.3% to A$11.80. Treasury last month announced the acquisition of California-based DAOU Vineyards, selling A$604 million of new shares to institutional shareholders and issuing shares worth A$157 million to DAOU's founders. It expects to raise another A$221 million from retail investors. Teeger still has an upside catalyst watch on the stock, having previously said he thinks China could soon scrap its tariffs on Australian wine. Treasury shares are down 1.2% at A$10.48. (stuart.condie@wsj.com)

0317 GMT - Accent Group loses its bull at Citi, where analysts lower their profit forecasts for the next three years on the expectation of lower gross margins and higher operating costs. The analysts cut their core net profit forecasts for FY 2024, FY 2025 and FY 2026 by 8.2%, 7.1% and 7.0%, respectively. They write in a note to clients that the Australian footwear and fashion retailer's gross margins so far in FY 2024 have been lower than expected. Citi cuts the target price on the stock by 9.0% to A$1.93 and downgrades its recommendation to neutral from buy. Shares are 7.0% lower at A$1.80. (stuart.condie@wsj.com)

0258 GMT - IAG is on track to achieve its FY 2024 target of recording an insurance profit of more than A$250 million in its Intermediated Insurance Australia division, Macquarie analysts say in a note. They reckon that underlying trends in the commercial insurance lines market are supportive. Macquarie maintains its outperform recommendation, as the strength of the premium rate cycle continues to earn through and benefit from higher interest rates and lower natural catastrophes. (alice.uribe@wsj.com)

0250 GMT - Accent Group may need to step up discounting in December due to the potential impact of additional inventory at the Australian fashion retailer, Wilsons analysts say. They write in a note that weaker-than-expected sales so far in FY 2024 are probably reflective of canceled orders and more promotional activity across footwear and fashion retail. The Wilsons analysts are not optimistic about the Black Friday sales period and downgrade their recommendation on the stock to market-weight from overweight. Their target price falls 14% to A$1.90. Shares are down 6.5% at A$1.81. (stuart.condie@wsj.com)

0215 GMT - Nine Entertainment keeps its buy rating from Goldman Sachs, where analysts see ad-market weakness being partially offset by an increased share of Australia's network TV audiences. They write in a note that they see Nine growing audience share by 0.3 of a percentage point to 41% in FY 2024. They also think that content including the recently concluded men's Rugby World Cup is driving solid subscriber growth at Nine-owned streaming platform Stan, where price rises should support solid growth in average revenue per user. GS trims the stock's target price 4% to A$2.30. Shares are down 0.8% at A$1.94. (stuart.condie@wsj.com)

0030 GMT - Australian miner Bowen Coking Coal has a clear pathway to positive cash flow, say Shaw and Partners analysts Andrew Hines and Peter Kormendy, after its A$50 million capital raise. That cash injection will allow Bowen to finish the Ellensfield South box cut, and a greater focus on that operation should result in wider margins for the miner as it shutters the unprofitable Bluff mine, they say in a note. They reiterate their buy recommendation but lower their target to A$0.23 from A$0.27 citing equity dilution. Bowen is up 5% at A$0.105. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

Catalyst Metals is expected to double production at its Plutonic gold mine in Australia over the next two years, increasing annual group output to more than 150,000 ounces, reducing cash costs per ounce and lifting the company into the mid-tier of ASX-listed gold miners, says Morgans analyst Chris Brown. In a note, he initiates coverage of the stock with a speculative buy rating and A$0.90 target. "The initial target price of A$0.90 is set at a discount of 20% to our valuation [of A$1.12], with this discount expected to decrease as CYL achieves its nominated production levels and reduces cash costs per ounce of gold," says Brown. Catalyst Metals last traded at A$0.80/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

November 19, 2023 22:58 ET (03:58 GMT)