0111 GMT - Brambles keeps its bull at UBS despite data showing that U.S. retailers' stock intensity is now lower than before the Covid-19 pandemic. Analyst Andre Fromhyr acknowledges there will be a slight 2H volume headwind on the pallet supplier's U.S. pooling business, but he tells clients in a note that most retailer destocking is now over. Elevated levels of supplier stocks are less of a concern for the U.S. CHEP business given Brambles is more heavily exposed to downstream volumes between suppliers and retailers. UBS keeps a buy rating and A$17.10 target price on the stock, which is up 0.1% at A$14.85. (stuart.condie@wsj.com)

0044 GMT - WiseTech Global's recent acknowledgement that it delayed the roll-out of several large product releases leaves Citi analyst Siraj Ahmed wondering what exactly they were. Ahmed tells clients in a note that he would like the logistics software provider to explain what the product releases related to and why they were delayed. He wonders whether they might have been enhancements to existing products or complete system refreshes. Other questions for management on Ahmed's long list relate to how long it typically takes to roll-out enhancements and whether customers start using them right away. Citi has a neutral rating and A$90.00 target price on the stock, which is down 0.5% at A$93.59. (stuart.condie@wsj.com)

0022 GMT - NextDC could raise equity in 2025 as the Australian data-center operator continues to expand to meet demand, Citi analyst Siraj Ahmed writes in a note. He tells clients that the strong demand from so-called hyperscale users is likely to prompt an earlier-than-planned fit-out of NextDC's S3, M2 and M3 centers, and accelerated development of its next Sydney and Melbourne centers. Ahmed raises his capex forecasts by 10% to A$770 million for FY 2025 and by 40% to A$690 million for FY 2026. He assumes a A$500 million equity raise in 2H of FY 2025. Citi raises the stock/s target price 28% to A$19.75 and keeps a buy rating. Shares are up 0.2% at A$17.18. (stuart.condie@wsj.com)

0012 GMT - South32's sale of its Illawarra Metallurgical Coal business is a big step in reshaping its portfolio to focus on base metals and addresses much of the worry around cashflow that emerged at the miner's midyear results, Jefferies analyst Mitch Ryan says in a note. He increases the target on the stock to A$4.00 from A$3.90 and reiterates a buy rating. The up-to US$1.65 billion sale is below Jefferies's NPV of almost US$2.0 billion, but Ryan says the benefits--such as the capital it unlocks to invest in projects such as Hermosa--outweigh the discount. He reckons South32 will end up with US$1.45 billion from the sale, due to a portion being contingent on prices. South32 is up 1.4% at A$2.86. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0010 GMT - Karoon Energy's result for the six months through December shows how its free cash flow can surprise, says Citi. Karoon reported operating cash flow of US$303.4 million, representing a 21% beat to consensus forecasts, analyst James Byrne says in a note. This "highlights the cash generation of the business which we think has been misunderstood," he says. "At a US$60 oil price for 20-25, we estimate that over the next 24 months Karoon could earn 40% of its market cap in free cash flow." Citi retains a buy call on Karoon, which is up 3.1%. (david.winning@wsj.com; @dwinningWSJ)

0001 GMT - Private hospital operator Ramsay Health Care's 1H result was better than Wilson expected. Group revenue of A$8.2 billion was 7% ahead of the bank's estimate, while Ebitda of A$1.04 billion was in line. "We went into it sensing downgrades but now, cannot see that," Wilsons says. "Ramsay's European business might be mispriced at current levels." Ramsay is up 5.4% at A$53.96, putting the stock close to its highest level since August. (david.winning@wsj.com; @dwinningWSJ)

2341 GMT - The big surprise in private hospital operator Ramsay Health Care's 1H result came from the U.K. where revenue of A$1.15 billion beat Jarden's expectations by 5.4%. An Ebitda margin of 13.1% was also much higher than Jarden's 11.0% forecast. "Overall we see no big holes in the result," analyst Steve Wheen says. "Qualitative guidance largely unchanged with higher net interest expense now flagged for FY 2024." Ramsay's stock is up 4.0% at A$53.21 in early trading. (david.winning@wsj.com; @dwinningWSJ)

2335 GMT - Carnarvon Energy says it will consider a sale of its stake in the Dorado oil field, among other options to unlock value, but Jarden thinks it may be better to wait before doing a deal. "In our view, a corporate transaction may fail to realize fair value for Carnarvon's assets until there is further clarity from Dorado operator Santos around its desire actively to move the Phase 1 liquids development to final investment decision," analyst Nik Burns says in a note. Jarden estimates a potential trade sale would be worth A$0.26-A$0.31/share, well above the stock's last trade at 18.25 Australian cents. Jarden retains a buy call on Carnarvon. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 28, 2024 23:09 ET (04:09 GMT)