0453 GMT - Hub24's earnings before interest, taxes, depreciation, and amortization margins are likely to expand in 2H FY 2024, say Citi analysts in a note. They also expect revenue growth to pick up in 2H FY 2024 with hiring skewed to 1H. Citi expects Ebitda margins to be flat for FY 2024 but reckons it will be a year of investment and consolidation of the loss-making MyProsperity acquisition. Citi forecasts Ebitda margins to expand 42% in FY 2026 versus 36% in 1H FY 2024. "One concern is whether Hub24's investment in adjacencies, specifically Class/Tech Solutions, will deliver adequate returns," Citi says and reiterates its buy call and A$42.80 target price. Hub24 rises 2.0% to A$37.72.(alice.uribe@wsj.com)

0112 GMT - The risk of stronger regulation of APA's gas pipelines is growing, Jarden says. APA says the Australian Energy Regulator intends to review its South West Queensland Pipeline. "The risk here is that the review results in AER recommending the pipeline becomes more heavily regulated, leading to a process to determine the regulated asset base," analyst Nik Burns says in a note. "The downside risk here is if the RAB is set at a level that results in a reference price well below existing tariff rates." This has the potential to threaten future earnings. (david.winning@wsj.com; @dwinningWSJ)

0051 GMT - A note by the auditors of 29Metals's 1H results that material uncertainty exists around whether the miner can continue as a going concern caught the eye of Jefferies. The auditors' opinion reflects covenants of 29Metals's Syndicated Facility Agreement, namely the debt service coverage ratio and net total leverage ratio, or NTLR. The covenant requires the NTLR to be below 2:1. "The results highlight the challenging position of the company," analyst Mitch Ryan says in a note. "We see a narrowing path forward without encountering further downside risk." Jefferies retains an underperform call on the stock. (david.winning@wsj.com; @dwinningWSJ)

0035 GMT - Analyzing the outlook for Australian health insurer Medibank is challenging as the regulatory approved premium rate hasn't yet been announced, say Barrenjoey analysts in a note. Even so, it views Medibank's earnings risk as staying on the upside. Following the company's 1H FY 2024 results Thursday, Barrenjoey cut its estimate for FY 2024 underlying net profit after tax by 1% on management expenses being higher than expected, although partially offset by lower claims inflation. It makes minimal earnings changes to FY 2025 estimates and out periods, keeping its target price unchanged at A$4.00. The stock is up 1.1% to A$3.69.(alice.uribe@wsj.com)

0013 GMT - Medibank's future upside may be constrained by increased uncertainty on government-approved premium rate rises and emerging evidence of affordability pressures for customers, Jarden analysts say in a note. Jarden says the earnings outlook into FY 2025 remains relatively unchanged after the insurer issued its 1H FY 2024 earnings Thursday, due to the support from higher underlying investment income. But with Medibank now offering only 3% upside to Jarden's A$3.75 12-month target price, the investment bank downgrades its rating on the stock to neutral from overweight. Medibank rises 1.8% to A$3.72. (alice.uribe@wsj.com)

2351 GMT - Insignia delivered a better-than-expected 1H FY 2024 results, with its advice unit showing a turnaround, say Morgan Stanley analysts in a note. But, they add that some of the beat came from delayed platform repricing."We still like the longer-term outlook for Insignia, but in the short term we see some cost and complexity," says MS. For example, the investment bank says there was no underlying earnings growth over the past four years, with it not expecting a recovery to earnings growth until FY 2026. Despite what MS sees as an "undemanding" price-to-earnings ratio, it reckons a re-rating looks hard near term. Still, the investment bank raises its target price 7% to A$2.30. Insignia rises 0.2% to A$2.58. (alice.uribe@wsj.com)

2349 GMT - Brambles's upgraded annual guidance and 1H free cashflow should reassure investors on the pallet supplier's outlook, Jarden analysts say. They point out in a note to clients that 1H free cash flow after dividends was strong at US$311 million, but will increase further to US$400 million-US$500 million in 2H in order to meet the company's annual guidance. Jarden has a last-published overweight rating and A$15.35 target price on the stock, which is down 0.5% at A$15.10. (stuart.condie@wsj.com)

2340 GMT - Medibank's 1H FY 2024 result was slightly weaker compared with Macquarie analyst's expectations, the investment bank says in a note. This was primarily due to lower revenue in the resident's business, and underlying net profit after tax was impacted negatively by Covid-19 movements. "We note the new accounting standard introduced seasonality into the Covid-19 reserve movement not previously disclosed," Macquarie says. On claims inflation, Macquarie sees that FY 2024 expectations have improved, but thinks it will be transitory. They also note that FY 2024 guidance for expenses and policyholder growth expectations were both downgraded. Macquarie cuts its target price 1.4% to A$3.60. Medibank rises 1.6% to A$3.71. (alice.uribe@wsj.com)

2332 GMT - Sandfire Resources' 1H profit result "provided no real surprises," with most key metrics broadly in line with expectations, RBC Capital Markets analyst Kaan Peker says in a note. The miner published a bunch of numbers, including revenue and operation Ebitda, alongside its quarterly production report in January "derisking the interim result," Peker says. "Unsurprisingly, FY24 guidance was also retained today, with SFR well positioned to deliver on strong copper production from Matsa and Motheo over the FY24 and FY25," he says. Sandfire is down 3.2% at A$7.38. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2326 GMT - Investors need to weigh Brambles's strong 1H result against what looks like softer pricing and U.S. market share losses, Citi analyst Samuel Seow says. He tells clients in a note that he is surprised that lower costs rather than higher revenue were behind the 18% rise in 1H net profit. Brambles's 1H net profit of US$391.3 million was about 1.7% higher than the average analyst forecast, as calculated by FactSet. Seow thinks that the market was probably hoping for improved FY revenue guidance, but Brambles left it unchanged and raised profit guidance on what Seow thinks is margin improvement on moderating costs. Citi has a last-published sell rating and A$13.15 target price on the stock, which is up 1.1% at A$15.35. (stuart.condie@wsj.com)

2303 GMT - Nine Entertainment's 3Q trading update and outlook were softer than expected by analysts at Macquarie, who think it will be six to 12 months before they become more positive on traditional media companies. Macquarie tells clients in a note they are still waiting on ad markets to bottom out. Nine's view of a mid-teens decline in 3Q free-to-air ad revenue compares with Macquarie's prior expectation of a 10% fall. The Macquarie analysts cut their EPS forecasts 15% for FY 2024, 17% for FY 2025 and 13% for FY 2026 on softer ad markets and higher debt costs. Macquarie cuts target price 20% to A$1.59 and stays neutral on the stock, which ended Thursday at A$1.68. (stuart.condie@wsj.com)

2213 GMT - Medibank's rising costs and policyholder lapses appear to have caused investor concern following the release of the health insurer's 1H FY 2024 results Thursday, Citi analysts say in a note. Despite this, the investment bank reckons Medibank's outlook still appears solid. For example, growth in the insurer's non residents line is driving gross margin higher while expense growth should slow in 2H, and claims growth is lower than anticipated. Citi lifts its estimated earnings per share for FY 2024 by 5%, which includes a 3% lift in operating profit before tax. The investment bank keeps its neutral call and price target of A$3.80 per share. Medibank was last down 5.4% to A$3.65. (alice.uribe@wsj.com)

1003 GMT - Insignia's final results for its exiting CEO were good, but Citi analysts reckon that closer scrutiny of the 1H FY 2024 earnings suggests the company's upgraded view for the year can be mainly explained by a pricing reduction deferral that is about to go through. "The pricing reduction and margin squeeze will still happen, it is just being delayed," Citi says in a note. "So, the impact on FY 2024 is less and this has been the main cause of the upgrade in guidance." Citi's FY 2024 estimated earnings per share rises 5%, which it says largely reflects the margin squeeze deferral, but the investment bank's FY 2025 and FY 2026 forecast EPS rises only 1%. Citi says the stock may continue to be inexpensive for some time. It moves the shares to sell from neutral. (alice.uribe@wsj.com)

(END) Dow Jones Newswires

February 23, 2024 00:12 ET (05:12 GMT)