0124 GMT - Megaport's shift toward higher-value products and partnership announcements is encouraging Macquarie analysts as they await improvement in several of the Australian communications-services provider's performance metrics. They stay bullish on the stock, pointing out in a note that the company should easily make its FY 2024 revenue guidance. Expected improvements including in new customer additions and total services have been pushed back, but Macquarie's analysts remind clients that Megaport's sales staff are incentivized on annualized recurring revenue, rather than volumes. The size of the revenue opportunity remains significant, they add. Macquarie raises the stock's target price 1.7% to A$18.30. Shares are down 4.2% at A$13.51. (stuart.condie@wsj.com)

0103 GMT - Computershare can grow its FY 2025 net profit by a percentage in the high single digits even in a lower interest-rate environment, Morgan Stanley analyst Andrei Stadnik says. With the management's assumptions of a U.S. Fed rate cut in May now looking unlikely, the Australia-listed share-registry company could reinvest in efficiencies rather than allowing a large beat to its FY 2024 margin-income guidance, he says in a note. This could help support 10% growth in so-called management EPS in FY 2025 or 7% growth in net profit, he says. MS resumes coverage of the stock with an overweight rating and A$29.70 target price. Shares are up 0.85% at A$27.30. (stuart.condie@wsj.com)

0051 GMT - Xero's US$25 million investment in shift-management software platform Deputy isn't seen by Citi analyst Siraj Ahmed as the best use of the cloud-accounting provider's capital. Ahmed acknowledges that partnering with Deputy chimes with Xero's in-house focus on accounting, payments and payroll, but tells clients in a note that he doesn't understand why the agreement only applies to Australia. He expects Xero to improve R&D efficiency and productivity by shutting down operations of its PlanDay shift-management business in Australia, and is interested in whether Xero continues to see PlanDay as part of its core focus in Europe. Citi has a buy rating and A$159.00 target price on the stock, which is flat at A$121.68. (stuart.condie@wsj.com)

0001 GMT - Adore Beauty CEO Tamalin Morton's sudden resignation shouldn't herald a shift in strategy, Citi says. Morton is stepping down after less than two years as CEO but will remain in a consulting capacity until September. "Even though her exit seems abrupt and quickly follows the exit of the previous CEO, we think details around the exit suggest continuity in Adore's current strategy," Citi says in a note. That continuity is important because Adore seems to be headed in the right direction, Citi says. It points to Adore's push to add more own-label products, drive customer retention through its app and explore bricks-and-mortar stores. (david.winning@wsj.com; @dwinningWSJ)

2351 GMT - Furniture retailer Nick Scali's U.K. acquisition gets a tick from Citi analyst Sam Teeger. Nick Scali has agreed to buy Fabb Furniture, paying GBP3.5 million to take on its secured debt and outlining plans to inject up to GBP6 million in net working capital. Citi says the smaller-than-expected size of the transaction means there's less risk to Nick Scali's core ANZ franchise if it's unable to turn around the loss-making Fabb Furniture franchise. "While the 2021 Plush acquisition should provide some confidence on Nick Scali's ability to successfully integrate and execute at Fabb, we think given the UK is a new market for Nick Scali this acquisition may prove to be more challenging than Plush and expect fewer cost of doing business synergies," Citi says. (david.winning@wsj.com; @dwinningWSJ)

2331 GMT - Core Lithium's share price has been a casualty of the downturn in lithium prices, but Macquarie thinks it has now fallen far enough. Following what it describes as a decent 3Q, Macquarie upgrades Core Lithium to neutral from underperform. Core Lithium reported cash operating unit costs of A$964/ton, which was 18% better than Macquarie's estimate of A$1,180/ton. The company ended 3Q with cash of A$80.4 million, some A$7.2 million better than Macquarie's forecast. In a note, Macquarie says it now expects a modest beat to Core Lithium's guidance for concentrate sales of 80,000-90,000 tons. Core Lithium's shares peaked above A$1.85 in November 2022, but have since fallen to A$0.14. (david.winning@wsj.com; @dwinningWSJ)

2322 GMT - Megaport's management has reacted to disappointing 3Q key performance indicators and improvement is now likely in the subsequent two quarters, Jefferies analyst Roger Samuel writes in a note. He doesn't seem worried by the Australian tech provider's disappointing 3Q growth in ports and new customer logos, telling clients that the company's new sales team need more time to ramp up delivery. Megaport now has eight sales staff in North America, he notes. He adds that management's focus on higher-value contracts should lift annualized recurring revenue growth, which has slowed to 4% on-year. Jefferies has a buy rating and A$16.52 target price on the stock, which is at A$14.10 ahead of the open. (stuart.condie@wsj.com)

2244 GMT - Conrad Asia Energy could retain an around 40% working interest in the Mako gas field offshore Indonesia, Wilsons says. Conrad Asia Energy says more parties have expressed an interest in buying a stake in the Duyung production sharing contract, which includes the Mako field, and that discussions are ongoing. Conrad Asia Energy owns 76.5% of the Duyung PSC, and lowering this close to 40% would reduce its capex obligations by some $30 million for the development's first phase, analyst James Karakatsanis says. "A lower working interest reduces Conrad Asia Energy's net present value of the project," Wilsons says. But its NPV should increase as project milestones are met, it adds. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires