0325 GMT - Recent trading updates by major Australian banks support UBS analyst John Storey's view that very optimistic assumptions are required to justify the recent rise in their share prices. Storey points out that bank multiples have expanded to 16.1X earnings on a two-year forward basis, from 13.2X earnings, even as consensus forecasts earnings to decline by 8% in FY 2024 and by 3% in FY 2025. Returns at these multiples have proven to be below market over the longer term, he tells clients in a note. ANZ and Macquarie are his sector picks, both with a neutral rating. (stuart.condie@wsj.com)

0307 GMT - Metcash's latest trading update appears to support Citi analyst Adrian Lemme's preference for Coles and Woolworths. Lemme writes in a note that the supermarket and hardware supplier's sales growth has remained steady over the past month, implying that food sales so far in its fiscal second half are lagging those of the twin supermarket giants. Lemme reckons that Metcash's food sales are down about 1% in the first four months of 2H, chiming with his longstanding view that consumers are returning to major chains after favoring local outlets during the Covid-19 pandemic. Citi keeps a neutral rating and A$4.00 target price on Metcash shares, which are up 2.5% at A$3.905. (stuart.condie@wsj.com)

0057 GMT - Short interest in Australia's major lenders is highest at Commonwealth Bank, according to Morgan Stanley analyst Richard E. Wiles. He tells clients that the average short interest as a proportion of the major banks' free-floating shares is at about 1.0%, near the midpoint of the 0.3%-2.1% range seen over the past 14 years. This rises to 1.5% at Commonwealth, which hit a record last week but is rated a sell by analysts surveyed by FactSet. Wiles adds that the equivalent proportions at ANZ, NAB and Westpac are 0.4%, 0.8% and 1.3%, respectively. (stuart.condie@wsj.com)

0051 GMT - Transurban's existing investments appear to be protected by the proposed transition to a new road-toll structure in Australia's New South Wales state, Morgan Stanley analyst Rob Koh says. He points out in a note to clients that transition measures put forward by a government-commissioned independent review of road tolls include an acknowledgement that reforms should include constructive engagement with operators. Reasonable expectations of operators should also be honored, the review says. Koh sees uncertainty for Transurban investors only at the margin. MS has an equal-weight rating and A$13.68 target price on the stock, which is down 1.9% at A$13.19. (stuart.condie@wsj.com)

0000 GMT - Amazon's Australian business is growing faster than previously expected by Jarden analysts, who see growing risk for local electronics, home and garden, and general-merchandise retailers. Jarden's analysts estimate that Amazon could take 18% of Australia's non-food online sales in the country's 2024 fiscal year, which runs through June. That's up from 15% in fiscal 2023, they add. Australian shoppers are seen increasingly using Amazon as a first point of purchase, hitting local retailers' sales and increasing pressure on them to invest in things like centralized fulfillment and regional distribution centers. They see JB Hi-Fi, Kogan.com, Wesfarmers and Myer as among those at risk. (stuart.condie@wsj.com)

2340 GMT - Telstra could cut jobs as part of its review of its underperforming network applications and services business, Jarden analysts say. They tell clients in a note that headcount reductions could extract short-term costs and move Telstra to its target of cutting A$500 million in costs by FY 2025. Looking to the medium term, they point to the Australian telecommunications provider's past overhaul of its consumer and small business operations and suggest that it could simplify the NAS unit's product range and operating model. Jarden has an A$4.40 target price and buy rating on the stock, which is down 0.5% at A$3.79. (stuart.condie@wsj.com)

2243 GMT - Haulage company Mainfreight gets a new bull in Macquarie ahead of an anticipated recovery in the global economy. In a note, Macquarie says there are signs that global freight volumes--especially sea-freight--have stabilized, and general freight rate increases are sticking. The bank expects interest rate cuts over the next 12-24 months in Mainfreight's key markets to boost demand and lift global freight volumes. At the same time, supply chains appear to be normalizing after years of disruption. "Green shoots are emerging and confirmation of this trend would be a catalyst" for Mainfreight's stock, Macquarie says. Its price target rises 18% to NZ$80.00/share. Mainfreight is down 0.5% at NZ$67.78 today. (david.winning@wsj.com; @dwinningWSJ)

2227 GMT - Deep Yellow's decision to raise A$250 million of equity before it has any debt or offtake in place is strategically bold, Jefferies says. Deep Yellow's capital raising partly meets a total funding requirement of A$680 million. "This funding gap elevates risk," analyst Chris Drew says in a note. Any weakness in uranium prices or inability to raise enough debt risks leaving the project unfunded, he says. "However, it also elevates leverage to uranium," Drew says. "We are positive on the outlook here, so cannot be too critical of the approach." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires