0105 GMT - Cettire keeps its bull at E&P Capital despite what analyst Julian Mulcahy characterizes as a quasi short report on the luxury goods retailer. Mulcahy is largely unconcerned by an Australian media report contending that Cettire pockets some import duties paid by customers. He accepts that the practice occurs but tells clients that there is an equal number of situations in which Cettire has to fork out for duty shortfalls on orders. He writes that the net impact on Cettire's business is relatively small. E&P keeps a positive rating and A$6.11 target price on the stock, which is up 0.1% at A$3.995. (stuart.condie@wsj.com)

0049 GMT - ANZ could engage in more asset rationalization following its decision to trim its stake in Malaysia's AmBank, according to UBS analyst John Storey. He tells clients in a note that ANZ's move in Malaysia is a small positive for the stock and strategically on-point. The timing looks good given a recent run-up in AmBank's share price over the past three months, he adds. Storey points out that ANZ has a 39% stake in Indonesia's PaninBank, but observes that those shares have remained soft. He reckons that ANZ remains compelling despite its shares outperforming those of major Australian bank rivals in 2023. UBS has a neutral rating and A$25.00 target price on the stock, which is up 0.5% at A$29.16. (stuart.condie@wsj.com)

0019 GMT - Accent Group's revenue and margin outlook helps the footwear and fashion retailer shake off a bear despite its relatively elevated earnings multiple. UBS analyst Shaun Cousins upgrades his recommendation to neutral from sell, writing in a note that Accent's strategy execution and consumers' broader resilience have both been stronger than he had anticipated. He raises EPS forecasts for FY 2024 and FY 2025 by 2.4% and 5.3%, respectively, on stronger revenue expectations from new stores and like-for-like sales growth. However, Cousins says the stock is valued at 15.0 times one-year forward earnings, which compares with 11.8 at Universal Store, his preferred youth-retail exposure. Target price rises 5.1% to A$2.05. Shares are up 1.8% at A$1.95. (stuart.condie@wsj.com)

2258 GMT - Zip improving profitability and U.S. user growth help secure the Australian buy-now-pay-later provider a new bull. UBS analyst Lucy Huang is surprised that Zip reversed the declining customer trends of the past two years, adding 100,000 new U.S. users in the December half. She points out to clients in a note that Zip managed this while keeping bad debts below its target range. She thinks that Zip's U.S. transaction volumes will grow by an annual average 32% to hit US$10.7 billion by FY 2026. Huang also sees cash earnings margins expanding from factors including cost control and new products. UBS lifts target price to A$1.43 from A$0.36, and raises its recommendation to buy from neutral. Shares are at A$1.17 ahead of the open. (stuart.condie@wsj.com)

2240 GMT - Bega's margins within its Branded goods business are likely to keep expanding in 2H, reckons UBS. Bega reported Ebitda margins of 6.5% in 1H, more than double levels at the corresponding stage a year earlier. In a note, analyst Evan Karatzas said lagged price increases drove most of the improvement, alongside some cost reductions. "Branded Ebitda margins have now returned back in-line with those of FY 2021 post the Lion acquisition," UBS says. "We expect margin improvement to continue in 2H, forecasting Ebitda margin of 6.9% and FY 2024 Ebitda of A$202 million." If achieved, annual Ebitda would by up 56% on a year earlier, UBS says. (david.winning@wsj.com; @dwinningWSJ)

2237 GMT - AGL Energy's wholesale profitability and retail margins look set to be squeezed by Australia's energy market regulators, Macquarie analysts tell clients in a note. They say that AGL shares, which have fallen almost 30% since August, are starting to show value but that impending rulings by national and state regulators on pricing add risk that market analysts could cut their forecasts. Macquarie expects lower base-load pricing across Victoria and NSW states, which will hurt the retail base load that AGL, as a generator, sells to itself. Retail margins could come under pressure if any regulatory squeeze stokes competition, they add. Macquarie keeps a neutral rating and A$9.60 target price on the stock, which is at A$8.68 ahead of the open. (stuart.condie@wsj.com)

2214 GMT - Lithium-market sentiment seems to be improving after a pullback in production from some miners, Macquarie analysts say in a note. They estimate Australian miners have cut planned 2024 spodumene supply by a combined 150,000 metric tons following a sharp fall in prices. The industry's response has signaled a potential lithium-price floor, by showing the point at which miners will cut supply, providing a boost to futures markets and resulting in a modest increase in spot lithium carbonate and hydroxide prices, the analysts say. The price outlook is also being supported by concerns about Chinese lepidolite supplies, due to media reports of environmental inspections, and project commissioning challenges in Africa, they add. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2146 GMT - A rosier outlook for crop production volumes in 2023-24 is positive for GrainCorp's FY 2024 result, Jefferies says. Australian government forecaster Abares said it now expects 51 million tons of crop in the year, up 2% on its projection in December. Abares is also upbeat about prospects for 2024-25. "Water storage, current sub-soil moisture levels and the Bureau of Meteorology's expectations for an end to El Niño conditions by mid-2024 are all supportive," Jefferies analyst John Campbell says. "GrainCorp continues to look long-term value, and we note Costa--a lesser quality business--has been taken out in the midst of a down cycle." (david.winning@wsj.com; @dwinningWSJ)

2141 ET - The uptick in Australia's savings rate caught Jefferies by surprise, although the bank cautions that the rate remains at very low levels. In a note, analyst Michael Simotas says income growth outpaced consumption for the first time since June 2021, driving an increase in the headline savings rate from 1.9% in the September quarter to 3.2% in the December quarter. Still, the long-run average savings rate is around 6%. "We expect discretionary retail spend to remain subdued, but with tax cuts imminent and potential for a monetary policy pivot, the catalyst for retailers to de-rate from their elevated multiples is not obvious," Jefferies says. (david.winning@wsj.com; @dwinningWSJ)

2135 GMT - Winsome Resources can navigate the wreckage in the lithium sector, suggests Euroz Hartleys. In a note, analyst Trent Barnett highlights the value that has been destroyed by the recent rout in sentiment toward lithium stocks. "Some of this will be permanent - there were a lot of uneconomic lithium projects which gained significant market capitalizations in the last cycle," Euroz Hartleys says. "On the other hand, the rout offers significant opportunity to buy companies with very good projects at significant discounts." Winsome Resources is one of those developers, it says, with a project in Quebec that is likely to get bigger over time. Euroz Hartleys retains a speculative buy call and raises its price target by 4% to A$1.30/share. Winsome Resources ended Wednesday at A$0.85. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires