0001 GMT - Karoon's entry into the Gulf of Mexico coincided with a lower oil price and production issues at its existing Bauna oil field in Brazil, and Macquarie views weak sentiment toward the stock as an opportunity for investors. In a note, Macquarie says Karoon's share price now reflects only its producing assets. But the bull highlights material upside from the development of its Neon and Goia fields in Brazil, and Who Dat East in the Gulf of Mexico. "With Bauna/Patola past peak production and less than 10 years life, it was important for Karoon to bring another asset into the portfolio," Macquarie says. It has a A$2.50/share price target on Karoon, which is up 3.5% at A$2.10. (david.winning@wsj.com; @dwinningWSJ)

2354 GMT - Monash IVF's A$12 million purchase of an initial 80% stake in the Fertility North clinic gets a tick from Macquarie, which notes the deal adds eight fertility specialists and expands its footprint in Western Australia. Monash IVF expects the transaction would have lifted FY 2023 EPS by 4%. Macquarie thinks this equates to a A$1 million net profit from Fertility North that year, leading it to calculate an acquisition multiple of 6x Ebitda, excluding potential earn-out payments. "We expect Monash IVF's strong patient pipeline and other recent acquisitions to support further share gains for Monash IVF in FY 2024, with ongoing structural tailwinds for the IVF industry as a whole," the bank says. (david.winning@wsj.com; @dwinningWSJ)

2348 GMT - Origin's move to raise its stake in Octopus Energy highlights that its balance sheet is now in good order, and the debt maturity at the holding company is long-dated, says Macquarie. Origin has lifted its stake in Octopus to 23%, from 20%, through a funding round that gives the business a GBP5.6 billion valuation. "Near term, the investment is cash flow negative as Octopus is unlikely to move to a dividend any time soon, but we believe the need for more capital is getting smaller," says Macquarie, which rates Origin at outperform. (david.winning@wsj.com; @dwinningWSJ)

2343 GMT - Impressive cost control likely drove G8 Education's unexpectedly strong FY 2024 profit guidance, says UBS. G8 Education says it now expects annual operating net profit of A$62 million-A$64 million, which beat UBS's forecast by 7% at the midpoint of the range and was 8% above consensus hopes. In a note, analyst Tim Plumbe says G8 Education's wage management and reduced agency usage kept a lid on costs, while occupancy was in line with expectations. UBS raised its 2023 net profit forecast by 3%, but kept its 2024 expectations largely unchanged. It retains a neutral call on the stock.(david.winning@wsj.com; @dwinningWSJ)

2335 GMT - Origin's incremental investment in Octopus Energy pleases Morgan Stanley, which says it has received consistent positive feedback on Octopus's Kraken platform from customers and others in the industry. Origin has lifted its stake in Octopus to 23%, from 20%, through a funding round that gives the business a GBP5.6 billion valuation. In a note, analyst Rob Koh notes that Origin's share is now worth A$2.43 billion, equivalent to A$1.41/share, which is a shade lower than an equivalent end-June valuation by an independent expert of A$2.58 billion-A$2.82 billion. (david.winning@wsj.com; @dwinningWSJ)

2252 GMT -- Sigma Healthcare looks overvalued to Macquarie's analysts, who say the stock is trading as though the pharmaceutical supplier's proposed combination with retailer Chemist Warehouse has already been approved. Merging with the privately held pharmacy operator would be transformational for Sigma, but there are concerns around competition and other regulatory issues, the analysts tell clients in a note. They estimate the chances of the deal being blocked or altered at 40%. Macquarie raises target price 10%, to A$0.88, and lowers its recommendation to underperform from neutral. Shares are at A$0.98 ahead of the open. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

December 19, 2023 23:13 ET (04:13 GMT)