0026 GMT - Technology One's annual result and outlook prompt Shaw & Partners analyst Jules Cooper to raise his revenue forecasts, although he sees limited upside to the stock. Cooper raises his revenue forecasts for the three years through fiscal 2026 by 4%, 4% and 6%, respectively, but says in a note to clients that his cost forecasts are also higher after the Australian software company's FY 2023 expenses rose more than he had anticipated. Target price rises 10% to A$17.30 on higher revenue expectations and roll forward, but Shaw & Partners keep a hold rating on the stock. Shares are down 1.3% at A$15.565. (stuart.condie@wsj.com)

0003 GMT - Select Harvests' strategic initiatives seem to be tracking well to UBS analysts, who nonetheless want more detail on the almond grower's cost outlook. The ASX-listed company's FY 2023 results were weak as expected, albeit with a slightly smaller net loss than UBS had forecast. The analysts point out that Select Harvests' expectation of A$35 million-A$50 million in FY 2024 cash benefits from various strategic initiatives compares with a previous target of A$30 million, although UBS had already seen evidence of improvement on this front. UBS has a neutral rating and A$4.70 target price on the stock, which is down 5.0% at A$4.15. (stuart.condie@wsj.com)

Propel Funeral Partners's 20% revenue growth and 11% Ebitda growth in 1Q FY 2024 is broadly in line with Macquarie's expectations, the investment bank's analysts say in a note. In 2Q, Macquarie reckons the company will benefit from an extra 200 funerals related to acquisitions that settled during 1Q, and that M&A should keep providing considerable earnings upside. Although Macquarie notes that its FY 2024 volume forecast of 21,163 is at the bottom end of the company's guidance, the investment bank retains its outperform call on the stock. (alice.uribe@wsj.com)

2352 GMT - Nick Scali is downgraded to neutral from a buy by Citi analyst Sam Teeger after the Australian furniture retailer's managing director sold 42% of his shares in a block trade. Teeger writes in a note that the sale generates additional uncertainty, pointing out that the stock declined 8% over six months following the last sell-down in 2018. He also observes that the subsequent annual result, while in-line with market expectations, showed slowing like-for-like sales momentum. While the fundamentals supporting the stock remain attractive, it's probably prudent to wait until after February's 1H result before becoming more positive, Teeger says. Citi cuts the stock's target price 13% to A$11.57. The stock is down 1.3% at A$10.695. (stuart.condie@wsj.com)

2335 GMT - Mortgage competition is one of the key issues expected to be discussed at a hearing starting Dec. 4 into whether Australia's competition regulator was right to block ANZ's bid to buy Suncorp's bank, say Citi analysts in a note. A key question for the Australian Competition Tribunal, which is running the hearing, is whether bank competition broadened post-Covid, or whether this was just due to unusually cheap and plentiful funding, they reckon. Citi sees the latter scenario as more likely, and that it is leaning towards the ACCC's view that ANZ's acquisition would lower competition. Citi reckons the competition regulator will likely prevail at the tribunal. A decision from the tribunal is expected in February, Citi says. (alice.uribe@wsj.com)

AMP's agreed class-action settlement is a positive, not only presenting a step forward in resolving its most-significant legacy issue but also potentially allowing AMP to progress with its third tranche of capital returns, Citi analysts say in a note. They say they now expect AMP to announce that by the end of the year. At the same time, the settlement of A$100 million is lower than Citi's earlier back-of-the-envelope estimates, say the analysts. Citi keeps a neutral rating and A$0.90 target price. AMP closed 5.9% higher Thursday at A$0.90. (alice.uribe@wsj.com)

Mortgage and business-loan growth across Australia's banking sector are likely to slow into FY 2024, say Goldman Sachs analysts Andrew Lyons and John Li in a note. At the same time, they see net interest margins falling by 9 basis points amid ongoing mortgage competition and accelerating funding-cost pressures. This is versus an 11 basis-point rise lenders delivered in FY 2023. Expenses, ex-notable items, are also likely to rise 6% in FY 2024. All this combined spurs GS to have pre-provision operating profit and cash earnings for Australian banks falling 6%-12% in FY 2024 and then falling again in FY 2025. It reiterates its buy calls on ANZ and NAB. (alice.uribe@wsj.com)

0503 GMT - Global reinsurers used to view Australia as a good hedge against events in the Northern Hemisphere, like earthquakes in Japan or hurricanes in Florida, but this is no longer the case, Insurance Council of Australia CEO Andrew Hall says. Speaking at the National Press Club, he says trends like extreme weather events hitting urban areas has prompted reinsurers to reassess Australia. "After wearing losses over several years in the Australian market they are having to put through significant increases in the cost of their cover," he says. "Some of the biggest price adjustments in nearly two decades have gone through the insurance system." Hall says Australian households and businesses are trying to maintain more expensive cover, but many are now looking at reducing or foregoing insurance coverage, leading to underinsurance. (alice.uribe@wsj.com)

(END) Dow Jones Newswires

November 23, 2023 23:17 ET (04:17 GMT)