0323 GMT - Metcash's co-investment with supermarket operators in improving stores is helping drive its sales, UBS analyst Shaun Cousins says. Having visited one of the Australian IGA stores that Metcash supplies, Cousins reckons that the way the investment is being targeted is paying off. Cousins tells clients that IGA operators reckon that Metcash already offers the lowest cost deliveries into their stores and that the development of a new distribution center could offer more benefits. Metcash has a A$4.25 target price and buy rating on the stock, which is up 1.5% at A$4.03. (stuart.condie@wsj.com)

0317 GMT - Southern Cross Media's strong growth in digital revenue should continue into FY 2025, but isn't sufficient for UBS analyst Lucy Huang to get bullish on the stock. Huang points out in a note to clients that while 3Q digital revenues are trending 50% higher than a year earlier, the digital business contributes less than 10% of the Australian media group's overall income. She thinks Southern Cross's expectation that its Listnr radio and podcast app will hit Ebitda break-even from 4Q of FY 2024 is realistic given the company's improved cost guidance. UBS lifts its target price for the stock by 30% to A$0.96 and stays neutral on the stock, which is down 2.5% at A$0.96. (stuart.condie@wsj.com)

2349 GMT - Australian insurance brokers as a group offer attractive multi-year growth options, say Morgan Stanley analysts in a note. The companies have strong operating leverage with no balance sheet risk, and capital light business models, the investment bank notes. MS also notes a news report about the possibility of a takeover of broker PSC Insurance from one of several overseas insurance brokers. There has been no comment from management about this latest report that it is aware of, MS says, adding that it sees healthy organic growth opportunities for PSC and an under-geared balance sheet that could provide further upside via inorganic growth.(alice.uribe@wsj.com)

2258 GMT - Sleep-treatment company SomnoMed's unexpected management reshuffle has cost it a bull. In a note, Wilsons analyst Shane Storey says the surprise changes to senior management ahead of long-awaited global regulatory clearances for SomnoMed's new RestAssure platform led him to downgrade the stock to market weight from overweight. "That the announcement was paired with clear cost-out messaging, makes us doubly uncomfortable," Wilsons says. It thinks SomnoMed should raise at least A$15 million to launch RestAssure properly and support its broader business. Wilsons cuts its price target by 64% to A$0.45/share. SomnoMed ended Wednesday at A$0.445. (david.winning@wsj.com; @dwinningWSJ)

2250 GMT - Australian banks are trading at peak multiples without a clear fundamental reason, Macquarie analysts say in a note. They reckon that the "the economic and stock-specific settings that underpinned banks' outperformance during previous rate cut cycles are not evident, and see that there is limited opportunity for banks to make any medium-term surprises. Due to this, Macquaries views that there are limited fundamental reasons for a structural re-rating. The investment bank stays underweight on the Australian banks sector, and downgrades Westpac to underperform from outperform following an around 17% share price rally. It also downgrades ANZ and NAB to underperform from neutral. Macquarie's order of preference is NAB, Westpac ANZ, Commonwealth Bank. (alice.uribe@wsj.com)

2245 GMT - Premier Investments could positively surprise investors with its 1H result on March 26, Morgan Stanley says. One boost to its shares could come from an earnings beat, with analysts noting Premier has a track record of surpassing prior guidance. In a note, analyst Joseph Michael points out that results from Premier's rivals have shown consumer spending in December and January was at least in line with consensus hopes. Premier's stock could also gain if the company outlines progress in a strategic review that could lead to retail brands Smiggle and Peter Alexander being hived off. Morgan Stanley says a 5%-10% earnings beat and progress toward a demerger "would put Premier on track toward our bull case valuation of A$41/share." Premier ended Wednesday at A$30.17. (david.winning@wsj.com; @dwinningWSJ)

2216 GMT - The latest international travel data should hearten Webjet investors, according to Jefferies. The data point toward solid ongoing growth in most regions where the online travel agency runs its WebBeds business. While China is some 28% below pre-Covid levels, Jefferies says the pace of its recovery suggests that gap will fully close by the middle of this year. As a result, analyst John Campbell raises his EPS forecasts for FY 2025-2026 by 4% and lifts Webjet's price target by 19% to A$8.30/share. Webjet ended Wednesday at A$7.44. (david.winning@wsj.com; @dwinningWSJ)

2156 GMT - Macquarie thinks the value of Ramsay Health Care's property portfolio is significantly larger than its operating business. In a note, Macquarie estimates the private-hospital portfolio is worth A$7.1 billion, using a 5% cap rate. That compares to its A$4.0 billion valuation of the operating business. "We continue to see the sale of Ramsay Santé and a change of control transaction for the group (in order to realize the value of Australian property) as the catalyst for material share price upside," says Macquarie, which has a neutral rating on Ramsay. (david.winning@wsj.com; @dwinningWSJ)

2150 GMT - Ramsay Health Care shares would likely rise if it sells its stake in the Ramsay Santé private-hospital business in France, Macquarie says. The bank assumes an Ebitda multiple of 10.0x in any transaction, based on previous deals and the current operating environment. That leads Macquarie to estimate an equity value of A$2.1 billion for the stake and an enterprise value of A$3.5 billion. If it's right then it represents an additional A$2.30/share, or 4% ahead of Ramsay's current share price. "In the absence of the sale of Ramsay Santé, we continue to see the outlook for France as uncertain, with digital investments constraining Australian margin improvement over the forecast period," Macquarie says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires