0249 GMT - Xero's current share price looks overly cautious to Goldman Sachs analysts, who think the cloud-accounting provider's U.S. prospects are stronger than the market is potentially assuming. The GS analysts, who have a buy rating on the stock, reckon that the market may imply almost no value in Xero's U.S. operation following its historical challenges. Yet they note Xero is increasingly focused on the U.S. under CEO Sukhinder Singh Cassidy, has an improved product, and a refreshed management team. They see Xero having the greatest potential upside among larger Australia-listed software-as-a-service stocks. GS keeps a A$152.00 target price on the stock, which is up 1.0% at A$119.03. (stuart.condie@wsj.com)

0238 GMT - Pro Medicus gets a new bull at Goldman Sachs, where analysts reckon that the healthcare-imaging software provider is a clear incumbent technology leader. Initiating coverage of the Australia-listed stock with a buy rating, GS analysts tell clients that the speed and cloud capabilities of Pro Medicus's Visage 7 platform makes it core to many healthcare institutions. This is giving it a significant boost in a growing market with a strong financial profile. They observe that Pro Medicus is winning U.S. market share amid customer modernization, and point to price rises, growing demand from preventative treatments, and adjacent opportunities. GS places a A$134.00 target price on the stock, which is down 2.8% at A$99.095. (stuart.condie@wsj.com)

0204 GMT - Zip can keep positively surprising the market over coming quarters thanks to growth initiatives such as the Australian buy-now-pay-later provider's account product, Ord Minnett analyst Phillip Chippindale tells clients. He sees upside potential from the Zip Plus product, which is aimed at higher-value purchases and charges a monthly fee on outstanding balances. Chippindale writes in a note that he also sees potential for further scale benefits, with Zip having cut net debt, improved cash flows and steadily reduced the overhang from its convertible notes. Ord Minnett raises its target price 44% to A$1.55 and keeps a buy rating on the stock, which is down 2.3% at A$1.1575. (stuart.condie@wsj.com)

0152 GMT - Zip's existing customers are likely to be the biggest driver of transaction-value growth on the Australian buy-now-pay-later provider's platform, UBS analyst Lucy Huang writes in a note. Huang tells clients that Zip's continuing pivot toward higher-value goods such as electronics and vehicles supports her view that the company can keep increasing average annual growth in total transaction volume by 31% through fiscal 2026. Zip's 49% growth in 3Q Americas transaction volume came despite a 1.7% fall in active customers in the region. UBS lifts the stock's target price 8.4% to A$1.55 and keeps its buy rating. Shares are down 2.5% at A$1.155. (stuart.condie@wsj.com)

0100 GMT - Pantoro could become a takeover target, says Euroz Hartleys, as a record gold price gives producers more firepower for deals. Pantoro achieved a key milestone in March with positive free cash flow of A$6.9 million, reducing risk around the stock. The company said its key Norseman project had operated with positive cash flow in February as well. "The Norseman Gold project still has M&A appeal in our view, as many cashed up mid tier producers in Western Australia lack organic growth options," analyst Michael Scantlebury says in a note. M&A appetite was highlighted by the proposed combination of Westgold and Karora Resources, announced last week. (david.winning@wsj.com; @dwinningWSJ)

0053 GMT - Evolution Mining needs record gold production of some 245,000 oz in 4Q, or 32% above 3Q, to achieve the bottom end of annual guidance, says Jefferies. "While theoretically possible given the ramp-up of Cowal underground, the path is fraught with risk and likely creates an airpocket in 1Q of FY 2025," analyst Mitch Ryan says in a note. Evolution today pegged FY 2024 output guidance at 749,000 oz of gold at an all-in sustaining cost of A$1,410/oz. "It requires heroic assumptions from most assets, and an unplanned event at any asset will be enough to fall below guidance ranges," says Jefferies, which projects an output of 703,000 oz at an AISC of A$1,544/oz. (david.winning@wsj.com; @dwinningWSJ)

0048 GMT - ASX's stock looks expensive, despite flat earnings growth versus global peers, say Morgan Stanley analysts in a note. This prompts the investment bank to reiterate its underweight view on the exchange operator's stock. "Our revenue and cost analysis suggests the stock is priced for optimistic outcomes on both, while we think the risks are skewed to the downside on costs," says MS. It expects a gradual market activity recovery through FY 2026, but reckons there could be elevated cost growth of 20% in FY 2024, before moderating to around 8% in FY 2025-2026. (alice.uribe@wsj.com)

0044 GMT - Rio Tinto's 1Q shipments from its Pilbara iron-ore operations were broadly in line with market expectations, UBS analysts say. They tell clients in a note that Rio's 1Q shipments of 78 million metric tons compared with an average analyst forecast of 79 million metric tons, with weather cited as the driver of any weakness. The mining giant's other divisions look soft to the UBS analysts, but they point to unchanged annual guidance and say that they will be able to catch up. (stuart.condie@wsj.com)

0040 GMT - Rio Tinto's weaker-than-expected start to 2024 doesn't trouble analysts at RBC Capital Markets. An RBC note to clients points to softer iron ore and copper volumes, with production misses seen as isolated to 1Q and not significant. Reassurance comes in the form of Rio Tinto's unchanged annual guidance, with copper and iron-ore volumes expected to sequentially increase over 2024. RBC has a last-published A$132/share price target and sector-perform rating on the stock, which is down 0.6% at A$127.97. (stuart.condie@wsj.com)

0038 GMT - Bank of Queensland's 1H FY 2024 result was slightly better than UBS analyst John Storey was expecting, but he still views it as a low-quality beat. For example, UBS reckons return on equity remains challenged, and that there are clear headwinds for BOQ. These are most notably around net interest margin, costs and BOQ's ability to effectively price and compete in a higher interest rate environment, Storey says in a note. "In the context of a muted view around improvements in future profitability, even at a 40%  discount to reported book value, BOQ  could remain in a holding pattern with risks to the downside," he adds. (alice.uribe@wsj.com)

0020 GMT - Bank of Queensland's 1H FY 2024 cash earnings could be viewed as a beat, but Citi analysts say it was largely driven by lower bad debts and lower costs. Despite 1H net interest margin being largely in line with estimates after adjusting for liquidity movement, Citi reckons the market will receive the result negatively. Investors may look through the asset quality beat, for example. Citi is looking for more information on BOQ's plan to restore profitability in retail banking, where 1H profits were down around 60% on-year. "The path to restoring profitability is unclear in a difficult mortgage market. We expect the market to focus on management initiatives to improve returns potential outside of a difficult retail banking outlook," Citi says. BOQ is 5.7% higher at A$6.13. (alice.uribe@wsj.com)

0011 GMT - With Bank of Queensland's balance sheet shrinking, E&P analyst Azib Khan says he finds it hard to be upbeat about the Australian regional lender's outlook. While BOQ's 1H FY 2024 cash earnings of A$172 million was 5% better than Visible Alpha estimates, E&P still views it as a low-quality beat driven by costs and bad debt charge. Lower-than-expected costs have been assisted by the percentage of expensed investment spend remaining well below general industry levels. "BOQ has said this percentage will rise, and we continue to see enough cost pressure over the next 3 years,' says E&P, adding that with regards to asset quality, there remains a notable uptrend in both commercial and housing 90-day arrears. (alice.uribe@wsj.com)

(END) Dow Jones Newswires